More Cebuano SMEs eyeing to expand via capital market

Amid calls to tap the international market and ink linkages with global businesses, more Cebuano businesses are eyeing to enter the capital market for Initial Public Offering (IPO).

This is the observation made by Mandaue Chamber of Commerce and Industry (MCCI) president Glenn Soco, following the aggressive campaign made by the Philippine Stock Exchange (PSE) encouraging SMEs to enter the stock market.

Soco said more Cebuano companies are realizing the good impact of being listed especially that the market is no longer confined in the Philippines.

He said SMEs are now more confident to level-up via IPO based on the success of some Cebuano companies that are going public .

Recently, PSE chief operating officer Ruel Refran urged SMEs especially from regional areas like Cebu to "break-out" and grow in this borderless economy, otherwise they will be swallowed by big boys.

"There's an opportunity for you to break-out. You cannot remain as SMEs," said Refran.

Refran explained that while the business climate and dynamics are changing very fast, there is a need for smaller companies to get a stronger shield, and entering the capital market could accelerate their plans for growth and even expand in the global landscape.

As most Filipino SMEs are now passing on business leadership to the next generation, this is the time to break out from the comforts of being a "family business."

SMEs should understand that entering into IPO is not just accessing capital from the investors, but it is also to show the world the company's seal of excellence — in governance and professionalism.

"PSE is not confined for the big boys. profe ssionalism is the next upgrade for SMEs. PSE is not only for the big boys. A listed company has good seal of excellence, easier to acquire, attract partnership with companies here and abroad," added Refran.

"When you list, even if you do not raise funds, you already determine the value of the company," insisted Refran.

Soco added that the confidence of SMEs to go public is much stronger now, as growing the value of a business is no longer a choice, but a necessity.