Indian fund manager wants to sell Phl stocks

MANILA, Philippines - One of the biggest equity capital market provider and investment banks in India is seeking to market mid-cap and small-cap stocks listed at the Philippine Stock Exchange (PSE) to foreign investors.

Mid-cap firms have a market capitalization of between $1 million to $5 million.

The fund manager, Relicare Capital Markets Corporate Finance Pte. Ltd., has secured a license from the Securities and Exchange Commission (SEC) to set up a representative office in the Philippines.

Relicare Capital Markets managing director and head of investment banking Sutha Kandiah said in a press briefing yesterday that their preference are mid-cap and small-cap firms focused on consumption.

“The Philippines is a consumption-driven economy, so we like companies that are into gaming, property, health education and retail,” Kandiah said.

In fact, they have been involved in stock offerings of PhilWeb Corp., Puregold Price Club Inc. and STI Education Systems Holdings.

On the equity marketing side, Relicare Capital Markets is looking to entice foreign capital to invest in listed mid-cap and small-cap firms.

Relicare Capital Markers managing director John Sturmey said the country’s bourse is among the best performing globally, and the Philippines is a preferred market for investors.

Sturmey noted that 55 percent of investments made in the PSE recently were foreign sources. Likewise, the PSE index (PSEi) has broken records 13 times this year and 38 times last year.

“It has the potential of growing another 20 to 25 percent,” he added.

In January alone, the PSE attracted $2 billion in investments.

Both Relicare Capital Markets officials believe that there are strong mid-cap and small-cap listed firms that can still attract the attention of foreign investors.

“We just have to identify them and bring them to the doors of investors,” Kandiah said. “We want to provide the liquidity.”