7-10 firms to hold IPOs this year — PSE's Sicat

Seven to 10 companies are expected to debut in the equities market this year as investors continue to entertain bullish dreams of soaring profits amid rosy earnings prospects, the Philippine Stock Exchange (PSE) chief said Tuesday.

 

"We expect seven to 10 IPOs (initial public offerings) this year," Hans Sicat, PSE president, told reporters in an interview at the sidelines of the Euromoney Philippines Investment Forum 2013 in Makati City.

 

The 2013 IPOs would be part of the P200 billion capital raising exercise through the PSE which  includes follow-on offerings, share sales and backdoor listings.

 

"The total value of deals is going to be at the P200 billion range, just like what we saw last year," Sicat told the conference  participants. "Corporations now look at IPOs as being part of a new leg of funding. This is a good trend," he added. 

 

In February, the thrift banking arm of Alfredo Yao's Zest-O group Philippine Business Bank listed on  the exchange. 

 

In 2012, five companies debuted on the PSE including D&L Industries Inc. last December, Coal Asia Holdings Inc. (September), GT Capital Holdings Inc. and Gotianun-led East West Banking Corp. (April), and Calata Corp. (May). 

 

Sicat noted the influx of foreign funds into the local mart as a "good incentive" for listed companies to do a follow-on offering or subsequent share sale. 

 

Rizal Commercial Banking Corporation senior executive vice president and Treasury group head Jose Emmanuel Hilado said the stuttering economies of debt-stricken Europe and the fiscal problems in the United States drove investors to flock into emerging markets like the Philippines.

 

"Investors are very bullish on the equity side... the fixed income side... and so long as the developed economies continue with their easing, funds will always look for a place where they can get better yield and the Philippines is one of those countries," he said at the forum.

 

Despite noting the local mart's high price-to-earnings ratio, First Metro Investment Corporation president Roberto Juanchito Dispo said listed companies continue to post hefty,  double-digit earnings growth.  

 

In the year-to-date, the PSE daily turnover averaged at P12 billion, said PSE chief Sicat.

 

Foreign funds drove the benchmark PSEi into 23 all-time high rallies this year from 38 all-time highs last year.  — VS, GMA News