The operator of the local bourse is expecting Philippine equities to grow further next year despite high anxiety over the results of the US presidential elections.
Philippine Stock Exchange Inc. (PSE) president Ramon Monzon told reporters on Thursday the market may see P120 billion in capital raised in 2025, higher than the P79 billion that came in this year.
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According to Monzon, this would include funds raised from six initial public offerings (IPOs), follow-on and stock rights offerings and private placements.
Despite the Philippine Stock Exchange Index’s (PSEi) current volatility following Donald Trump’s victory in the US presidential elections, Monzon remained optimistic that more firms would tap equities.
“This year, we only had three IPOs, small ones. But we had big follow-on offerings,” Monzon said on the sidelines of the PSE’s corporate governance forum with the Securities and Exchange Commission.
“I don’t look at IPOs, I look at capital raising … next year, I think we can do P120 billion,” he added.
While analysts have warned that Trump’s anticipated import tariff increases may negatively impact equities across the globe, they also noted that easing interest rates in the Philippines may still lift the bourse.
So far, the PSEi has declined by 12.12 percent to the 6,600 level from its recent peak of 7,500 in October.
New IPOs
The stock market has seen just three IPOs this year: OceanaGold Philippines Inc., which raised P6.03 billion in May; Citicore Renewable Energy Corp., P5.3 billion in June; and NexGen Energy Corp., P529 million in July. This is way below the PSE’s target of six listings this year worth P40 billion.
Cebu-based fuel retailer Top Line Development Corp. was supposed to raise P3.16 billion from its IPO originally scheduled this month, but the company had opted to move its stock market debut to the first quarter of 2025 to accommodate potential institutional investors.
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Big names like Ayala-backed e-wallet GCash and the SM Group’s real estate investment trust have also postponed their IPOs to wait for better market conditions.
Monzon previously explained that high interest rates in the first half of the year prompted companies to opt out of raising capital from equities.
Still, Monzon said easing inflation, interest rate cuts and the PSE’s upcoming products may help attract more investors.