PSE eyes 8 initial public offerings this year

THE PHILIPPINE Stock Exchange, Inc. (PSE) is aiming to double the number of initial public offerings (IPO) it had in 2017 for this year, a top official said over the weekend.

PSE President and Chief Executive Officer Ramon S. Monzon said they target to have eight IPOs, even though no company has yet taken itself public so far this year.

“We targeted eight. Unfortunately up to May, there’s still zero,” Mr. Monzon told reporters after the company’s annual shareholders’ meeting in Mandaluyong City on Saturday.

The aggressive target comes amid the lackluster performance of the Philippine Stock Exchange index since February, which has so far retreated by 20% from its high of 9,058.62 last Jan. 29 to 7,546.19 on May 4’s close.

“There will still be appetite and it just depends on the pricing as the companies that will list in the PSE have good market positions and good future prospects,” BDO Capital and Investment Corp. President Eduardo V. Francisco said via text.

The 2018 target is the double the four companies that listed their shares for the first time at the stock exchange in 2017, including Wilcon Depot, Inc. (P7-billion IPO), Eagle Cement Corp. (P8.6 billion), Cebu Landmasters, Inc. (P2.9 billion), and Chelsea Logistics Corp. (P5.8 billion).

So far, only two firms have filed their IPO plans with the Securities and Exchange Commission.

Del Monte Philippines, Inc. (DMPI), the local unit of the Del Monte Pacific Limited (DMPL), said it seeks to raise P16.7 billion from the sale of 559.464 million shares to the public, priced at P29.88 apiece. This comprises about 20% of DMPI’s outstanding shares.

Net proceeds of the offer will be used to partially prepay or repay DMPL’s existing debt, as well as for general corporate purposes.

DMPI’s proposed IPO will make it the largest since Pilipinas Shell Petroleum Corp.’s $380.79-million IPO in October 2016, and will top Felda Global Ventures Holdings Bhd’s $3.27-billion IPO in 2012, the largest in Southeast Asia.

The company targets to conduct the IPO this month, pushing back its initial April schedule to give way for other share sales in the market, such as Metropolitan Bank & Trust Co. and Bank of the Philippine Islands. DMPI has tapped BDO Capital the offer’s issue manager, sole global coordinator, and sole book runner.

Meanwhile, property developer DM Wenceslao and Associates, Inc. also applied to take a fifth of its shares public by June. The company targets to raise P15.5 billion from the sale of 679.172 million shares, with an over-allotment option of up to 101.876 million shares, at P22.90 each.

The real estate firm, known for its development of the 204-hectare Aseana City in Parañaque City, plans to use the net proceeds of the offer for the further expansion of the estate. The company has allotted P7.46 billion for land acquisitions, P5.31 billion will be for the development of nine projects, while P500 million is for infrastructure development.

BPI Capital Corp. and Maybank Kim Eng Securities, Pte. Ltd. will serve as the joint global coordinators and book runners of the offer.