Deloitte is cautiously optimistic about initial public offerings (IPO) at the Philippine Stock Exchange (PSE) in 2025, noting that more money had been raised this year despite a dearth of listings.
“The buzzword is cautious optimism,” Deloitte Audit & Assurance Partner Darren Ng said in a briefing on regional prospects on Tuesday, adding that for the country, “I think there should be more IPOs happening in 2025 and [from] a mix of different industries.”
Ng noted that the Philippines had recorded three public listings to date, raising over $203 million at a market capitalization of $972 million.
While there were more IPOs in 2023 at eight, these only raised $81 million at a market capitalization of $287 million, he added.
Two of three IPOs managed to be included in the region’s top 10: OceanaGold (Philippines) Inc. — the first gold and copper mining company to be listed in the PSE in over a decade — raised $104 million and came in fourth while solar power firm Citicore Renewable Energy Corp. generated some $90 million for seventh place.
“From a deal size perspective, you can see that there is actually an increase in the amount … raised, even though the number of IPOs have decreased from last year,” Ng said.
“What’s interesting is…all the three IPOs are all in the energy and resource market,” he added.
Ng noted that the Philippine government had allowed full foreign ownership of renewable energy products, which drove investor interest in the sector.
More energy firms could opt to go public in 2025 and from a pipeline perspective some gaming and hospitality companies could join, he added.
Stock market volatility has raised worries about IPO prospects and on Monday, Cebu-based fuel retailer Top Line Business Development Corp. (Topline) said that it would be delaying its public debut to the first quarter of next year.
Topline Chairman, President and CEO Erik Lim, who had earlier said that the IPO would push through despite a weakening stock market, said the firm had “received advice from potential investors to adjust our IPO timetable to accommodate their due diligence process.”
The benchmark Philippine Stock Exchange index, which has fallen for four straight weeks, regained some ground on Monday due to bargain-hunting.
The PSEi added 41.84 points, or 0.62 percent, and ended the day at 6,803.19.
The broader All Shares also edged up, by 12.48 points or 0.33 percent, to 3,812.18.
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