December 1, 2024 | 12:00am
MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) expects capital-raising activities to grow by 50 percent next year, with the number of companies going public seen doubling.
“Next year, we can get P120 billion probably – a 50-percent increase. That’s capital raising. That includes follow-on offering, stock rights offering and private placement,” PSE president and CEO Ramon Monzon said.
Monzon said the PSE has recorded P79 billion in capital raising so far this year.
He said the amount is likely what the PSE will end 2024 with.
Last year, total capital raised from primary and secondary shares amounted to P140.95 billion, up by 28 percent from the P110.29 billion raised in 2022.
Aside from three initial public offerings (IPOs), other capital-raising activities conducted last year included five follow-on offerings, five stock rights offerings and 11 private placements.
For 2024, the PSE was originally targeting six IPOs and about P175 billion worth of capital to be raised.
“This year we only have three IPOs; small ones. We should be able to get six by next year,” Monzon said.
The executive earlier said the PSE is optimistic that bright spots such as easing inflation and interest rates would help create an ideal environment for capital raising next year.
Monzon also remains upbeat on the completion of the PSE’s planned acquisition of the Philippine Dealing System Holdings Corp. (PDS) within the year.
“Still hoping this year,” he said.
According to Monzon, discussions among the parties are still ongoing.
“It’s a work in progress. We are still negotiating. There are so many shareholders. You have the Singapore Exchange Ltd. valuation, the Bankers Association of the Philippines (BAP) valuation and then PSE valuation,” he said.
The PSE’s potential acquisition of the PDS will pave the way for the integration of the local bourse with the fixed-income exchange.
The PDS Group is the operator of the Philippine Dealing and Exchange Corp., the country’s sole fixed-income exchange.
The PSE owns 20.98 percent of the issued and outstanding capital stock of the PDS Group.
Other PDS stockholders include BAP (over 28 percent), Singapore Exchange (20 percent), Tata Consultancy Services Asia (eight percent), Whistler Technologies Services Inc. (eight percent) and San Miguel Corp. (four percent).
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