PSE sees more firms listing in 2014

MANILA, Philippines - The operator of the country’s only stock exchange anticipates 2014 to be another active year in terms of capital raising initiatives.

Ten new firms are seen to debut in the local bourse next year, contributing to the target of P200 billion in capital to be raised through equities, the Philippine Stock Exchange’s (PSE) top official said.

“We are hoping that we have a relatively robust market next year,” said PSE president and CEO Hans B. Sicat.

“Backdoor listings are effectively (market debuts) as well. If we get at least 10 of these things, I think it will be a good year,” Sicat said.

For this year, seven firms joined the local stock exchange through an initial public offering (IPO): Philippine Business Bank, Asia United Bank, AG Finance Inc., Harbor Star Shipping Services Inc., Robinsons Retail Holdings Inc., Travellers Hotel Group Inc. and Concepcion Industrial Corp. Del Monte Pacific Ltd. listed by way of introduction.

Upstream oil exploration firm Frontier Oil Corp. will conduct its previously shelved P2.2-billion IPO in the first quarter of 2014.

Hence, the PSE expects capital raising activities to remain strong for next year.

“If you don’t have major issues like the (the US Federal Reserve’s) tapering, we could reach P200 billion area again,” Sicat said.

As of mid-August, capital raised through the local bourse hit P31.27 billion, just one-third of the P91.13 billion in the same period last year.

In 2012, capital proceeds from private placement, stock rights offerings and follow-on offerings amounted hit P50.38 billion, P52.07 billion and P92.64 billion, respectively