PSE targets P200 B from capital raising moves

The Philippine Stock Exchange said it expects two to three companies undertaking their initial public offerings (IPO) in the first quarter of the year as it targets an estimated P200 billion worth of capital to be raised from the market in 2017.

In a briefing Friday night, PSE president Hans Sicat said the bourse hopes to hit P200 billion in capital rais- ing activities – including IPOs and follow-on offerings – this year from P170 billion in 2016 despite the market’s volatility.

“It seems like (P200 billion) is an easy number but in reality it’s not an easy number. You really can’t tell with all the issues,” Sicat said, referring to rising global interest rates and other uncertainties abroad.

Nevertheless, Sicat said he is optimistic unlike last year when companies braved the market only in the second half, the listings may happen as early as March.

“If the deals get through, we can have two to three (IPOs) by March,” Sicat said.

PSE chief operating officer Roel Refran said they are expecting at least eight IPOs for the whole year.

“We have six to eight (in the pipeline),” Refran said.

Among the companies planning to do an IPO are Wilcon Depot Inc. (P7.9 billion); Cebu Landmasters Inc. (P3.8 billion); Audiowav Inc. (P2.7 billion); Pure Energy Holdings (P1.5 billion); Xeleb (P736 million) and The Big Chill (P500 million to P600 million).

Sicat said the environment is more conducive for IPOs this year as some of the global uncertainties have already dissipated. These include last year’s policy rate setting meeting of the US Federal Reserve, the US elections and move of Britain to exit from the European Union.

As such, the PSE hopes to raise more capital this year from listings and other fund raising activities coursed through the local bourse.

Last year, total capital raised from PSE including IPOs amounted to P170.12 billion, which was below the P184.60 billion raised for the whole of 2015.

Sicat also expressed hopes the market would perform better this year.

The benchmark Philippine Stock Exchange index (PSEi), the local stock barometer, closed at 6,840.64 last year, lower by 111.44 points from the end-2015 level of 6,952.08.

For this year, Sicat hopes the PSEi would finally stabilize and possibly hit the 8,500 level and daily value turnover would improve to an average of P8 to P8.2 billion from the P6 billion to P7 billion levels recorded in 2016.