By Alexandria Grace C. Magno, Reporter
THE Philippine Stock Exchange (PSE) expects capital raising through the equities market to reach about P203.4 billion this year, with two initial public offerings (IPOs) still expected before yearend, PSE President and Chief Executive Officer Ramon S. Monzon said.
The latest estimate is broadly in line with the P204-billion capital-raising target announced by the Exchange in July, when it raised its original 2026 target of P170 billion.
Mr. Monzon said the Exchange now expects capital raising to reach about P203.4 billion by yearend despite market volatility linked to the conflict involving Iran.
“We did that waiver in our commitment despite the volatility caused by the Iran war. And that paid off because we expect to close the year with about P203.4 billion of capital raising,” he said during the first day of the Philippine Stock Exchange Strengthening Access and Reach (PSE STAR) investor briefing on Monday.
The P203.4-billion projection includes the planned IPOs of Mynt and VITRO, which are expected to be among the largest offerings for the year.
VITRO, the data center arm of PLDT Inc., has filed an application for what could become the country’s first digital infrastructure real estate investment trust (REIT). It is seeking to raise up to P24.2 billion.
Mynt, the operator of e-wallet GCash, has filed for a proposed IPO that could raise as much as P92.3 billion. It is targeting a fourth-quarter debut on the PSE.
“We expect these remaining two IPOs for the year. And we have one listing by way of introduction, which is the PNB Holdings scheduled for September this year,” Mr. Monzon said.
He said the listing pipeline reflects companies’ continuing need for capital, although market volatility can prompt firms to defer planned offerings.
“Companies will continue to need capital. So, they will continue to try to raise capital in the equities market,” Mr. Monzon said.
“Sometimes these efforts are postponed because of the volatility of the market. But inevitably, they will have to come back and raise capital from the equities market.”
The PSE is also seeking to deepen the local capital market by expanding its range of products and making it easier for companies to list.
“As an Exchange, I think our mission is to make sure that our market remains number one, up to date in its technology,” Mr. Monzon said.
He said the Exchange is also working to “make it easier for companies to list” and introduce more products to attract retail investors and deepen the market.
Among the PSE’s priorities are the introduction of global depository receipts, further development of the local securities borrowing and lending (SBL) market, and the rollout of short selling.
“The local SBL is already operational. We just need to populate the pool with securities to be lent,” Mr. Monzon said.
The Exchange is also working on direct pool lending by foreign investors, which he said could improve liquidity in the SBL market.
“We’re launching this short selling, not so much for the retail investors, but really more for foreign investors so that they are able to hedge their investments in the country instead of having to liquidate when there are problems in the emerging markets or even the Philippines in particular,” Mr. Monzon noted.
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