BDO: Opportunities still present despite market volatility
The investment banking arm of BDO Unibank remains optimistic on the growth trajectory of the Philippine economy even with the prevailing volatility in the markets causing investors to be more cautious.
Business sector continued to expand this year. Fourteen banks and corporates raised P120 billion in bonds and long term deposits in the debt market, while another 10 companies obtained P166 billion in capital through the equity market via public offers as of end-August.
Such optimism continues to present opportunities for issuer and investor clients alike to access the capital markets for fund-raising and investment prospects. For potential issuers, BDO Capital and Investment Corp. (BDO Capital) said there is a need to engage them continuously on a real-time basis so that they can be given timely guidance as clients embark on a capital-raising program such as an initial securities offering.
There are typically three phases involved in a public offer, explained BDO Capital president Ed Francisco.
First is the housekeeping stage, next is “going public” phase and lastly, the “win-win” phase.
First stage prepares a company to go public and involves determining which businesses to include in the IPO, getting financial reporting systems in order, and setting up good corporate governance policies and the corresponding infrastructure to implement these policies. Next is the regulatory application stage or the filing with, and presenting the company to, the market regulators for deal approval so that they can access public funds. Finally, the public offering.
The second stage meanwhile requires close coordination with the regulators to make sure that the company is deemed worthy of "going public". Once the first two stages are done, the last stage gives the company the opportunity to access the capital markets via public offer of its securities as opportunities present themselves.
The market will always be there. Our job requires us to be excessively attuned to market conditions and prospects BDO Capital president ED FRANCISCO