The Philippine Star
Listed firms raise P150 B in H1
Funds raised by listed companies jumped 40.5 percent to P150.01 billion in the first half of the year from P106.74 billion in the same period last year, just before the bears took over last month.
Philippine Stock Exchange president and CEO Ramon Monzon said the growing domestic economy has encouraged investors to proceed with their business expansion plans.
“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,” Monzon said.
The P150 billion raised in the first half of the year is already 75 percent of the PSE’s capital raising target of P200 billion for 2018.
The capital raising activities consisted of stock rights offerings by PetroEnergy Resources Corp., Robinsons Land Corp., Integrated Micro-Electronics Inc., The Philippine Stock Exchange Inc., Metropolitan Bank & Trust Co., and Bank of the Philippine Islands and the initial public offering of D.M. Wenceslao and Associates Inc. There were also private placements in IRC Properties Inc. China Banking Corp., Basic Energy Corp., and Golden Bria Holdings Inc.
“The exchange is pleased to be a conduit in the growth of listed companies by serving as a venue for capital raising. We are also delighted to have already reached 75 percent of our target capital raising amount for the year,” Monzon added.
Despite being in the bear market, the PSE expects more fund raising activities in the next two months. These include follow-on offerings and stock rights offering.
Global Ferronickel Holdings Inc., the listed nickel miner, for instance is raising P517.5 million from a share sale, which will run from July 9 to 13.
Another listed company, DoubleDragon is having a follow on offering of up to 150 million common shares with the offer period to run from July 2 to July 6.
Yuchengco-owned Rizal Commercial Banking Corp. (RCBC), meanwhile, plans to raise P15 billion through a stock rights offering.
“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,” Monzon said.
On June 20, the market officially slipped into bear territory.
The benchmark PSE index closed at 7,261.62, its lowest level since March 27, 2017 when the market closed at 7,245.97.