BDO Capital and Investments Corp. is in talks with 10 companies for possible initial public offerings (IPOs) next year.
BDO Capital President Eduardo Francisco said in an interview at the sidelines of the Economic Journalists Association of the Philippines-Aboitiz Power renewable energy forum that these companies were planning to raise between P3 billion and P5 billion to fund expansion plans.
These firms are mostly engaged in retail, real estate, consumer, and restaurant businesses, he said.
Francisco said with an improving macroeconomic environment, many companies were reviving their IPO plans. These planned IPOs could take place next year when interest rates are expected to drop further, he said.
Francisco said companies planning to issue real estate investment trusts (REITs) were also looking to push through with offerings in 2025.
“If interest rates go down by 1.5 percent from current levels, then equities will become very interesting,” Francisco said.
The highly anticipated IPOs of businessman Enrique Razon’s Prime Infrastructure, SM Prime’s REIT, and Ayala-backed e-wallet pioneer GCash were deferred this year due to high interest rates and inflation.
Only four firms have been listed on the local bourse since the start of the year, including OceanaGold Philippines Inc., renewable firm Citicore Renewable Energy Corp., and NexGen Energy Corp. Jenniffer B. Austria
Cebu-based fuel retailer Top Line Business Development Corp. (Top Line) also plans to conduct an IPO before the end of the year.
Top Line intends to offer to the public up to 3.68 billion primary common shares with an overallotment option for another 368.31 million secondary common shares. The indicative offer price is up to P0.78 per share, subject to a bookbuilding process.
The Philippine Stock Exchange earlier said it expected to receive six IPOs in 2024.
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