Capital raised via stock market hits P150 billion in first half

CAPITAL raised at the stock market reached a record P150 billion in the first half, as companies braved the local market amid prevailing volatility.

In a statement issued over the weekend, the Philippine Stock Exchange ( PSE) said capital raised jumped 40.5% to P150.01 billion during the first six months of the year, from the P106.74 billion recorded in the same period a year ago. This represents 75% of the PSE’s P200-billion target for the year.

“The Exchange is pleased to be a conduit in the growth of listed companies by serving as a venue for capital raising… Market volatilities did not hamper the expansion plans of our listed companies. This is an indicator that they are set on completing their business initiatives amidst a robust domestic economy,” said PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.

The funds raised came mainly from stock rights offerings, including P758.3 million from Yuchengco-led PetroEnergy Resources Corp., P20 billion from Robinsons Land Corp., P5 billion from Ayala- led Integrated Micro- electronics, Inc., P2.898 billion from The Philippine Stock Exchange, Inc., P60 billion from Metropolitan Bank and Trust Co., and P50 billion from the Bank of the Philippine Islands.

During the first half, the PSE also saw the initial listing of property developer and construction frim D.M. Wenceslao, Inc., where it raised P8.15 billion.

Private placements from IRC Properties, Inc., China Banking Corp., Basic Energy Corp., and Golden Bria Holdings, Inc. accounted for the balance of the funds raised.

The PSE expects more fundraising activities in the second half of the year. Included in the pipeline are the follow-on offerings of DoubleDragon Properties Corp. worth up to P4.5 billion scheduled for July 13, and that of Global Ferronickel Holdings, Inc. worth P517.5 million set for July 20.

Rizal Commercial Banking Corp. will likewise conduct a P15billion stock rights offering by Aug. 3.

Meanwhile, canned fruit manufacturer Del Monte Philippines, Inc. has yet to announce whether it will push through with its planned P17.55-billion share sale, which it canceled due to market volatility.

The PSE index is currently in bear market territory, after having dropped more than 20% from its recent high of 9,078 last January. The local index managed to bounce back 1.8% to 7,193.68 last Friday, albeit still 20.8% lower than the record high for the year.

“While the stock market has experienced a sharp decline from its all-time high early this year, we expect the country’s sound economic fundamentals to continue to encourage listed companies and potential issuers to raise capital through the equities market and to attract investors to participate in the offerings,” Mr. Monzon said. —