Listed firms raise P184 B capital in 2015

MANILA, Philippines – A total of P184.6 billion worth of capital was raised at the Philippine Stock Exchange (PSE) in 2015, lower than the P200-billion target but still 21 percent, higher than last year’s P153.08 billion.

The fund-raising activities ranged from initial public offerings (IPO), follow-on offerings, and private placements.

In 2015, four companies were added to the roster of listed firms at the PSE: Crown Asia Chemicals Corp., SBS Philippines Corp., Metro Retail Stores Group Inc. and Italpinas Development Corp.

However, two construction giants – D.M. Wenceslao and Datem Inc. – deferred their planned listing initially scheduled in 2015 amid the prevailing market volatility.

Other companies that planned to list this year included Pointwest Technologies Corp., a technology firm, and Philstocks Financial, a brokerage company.

The IPO-bound companies are expected to proceed with their planned listings in 2016.

“We expect the stock market will continue to be a preferred venue for fund-raising activities of both listed companies and privately-owned firms that are considering listing at the Exchange,” said PSE president and CEO Hans Sicat.

The market’s average daily turnover was also slightly higher, up 1.8 percent to P8.96 billion in 2015 from P8.80 billion in 2014, data from the stock exchange showed.

The benchmark PSE index (PSEi) ended the year at 6,952.08, 3.9 percent lower from its closing level in 2014.

For 2016, the PSE is hoping to see continued capital raising activities and product offerings.

The bourse is also working on its request for exemptive relief to acquire additional shares in the Philippine Dealing System Holdings Corp. (PDS) to be granted by the Securities and Exchange Commission (SEC), the corporate regulator, as it seeks to merge the two exchanges.

Moving forward, Sicat said the PSE would continue its corporate governance initiatives, including the PSE Bell Awards.

It has also started working with the PPP Center to find ways for the stock market to be a venue to raise capital for public-private partnership projects. The PSE will also continue to conduct its various market education and financial literacy programs.

“We look at 2016 with optimism and we hope market indicators will improve next year. We expect that the country’s solid macro-economic fundamentals will continue to drive stock market growth, aided by election-related and infrastructure spending,” Sicat said.