IPOs, secondary offerings made PSE richer in 2016

The Philippine Stock Exchange Inc. (PSE) on Friday reported a net income of P701.54 million in 2016, up 3 percent from P682.81 million a year earlier, primarily from initial public offerings (IPOs) and additional share sales.

Its operating revenue grew by 4 percent to P1.26 billion from P1.2 billion, while operating expenses totaled P592.60 million, down 1.5 percent from P601.91 million.

Listing-related income increased by 15.6 percent on the back of four IPOs and 39 additional listings last year. Listing-related income accounted for 44.2 percent of PSE's operating revenue.

Among the companies that went for an IPO last year were Golden Haven Memorial Park Inc., Cemex Holdings Philippines Inc., Pilipinas Shell Petroleum Corp., and Shakey's Asia Pizza Ventures Inc.

Meanwhile, trading-related income fell by 2.2 percent as total value turnover declined by 10.3 percent to P1.93 trillion.

"Our revenues were affected by the volatile markets as it kept our trading-related income muted. But the decline in this segment was more than offset by the multiple offerings we had, which picked up in the second half of 2016." PSE President and CEO Hans Sicat said.

"This year, we believe we would have a healthy IPO and secondary offering pipeline which could support the growth of listing-related revenues," Sicat noted.

The PSE operates the only stock exchange in the Philippines, one of the oldest in Asia. It is also a shareholder in the Philippine Dealing System Holdings Corp., the holding company encompassing the Philippine Dealing & Exchange Corp., the Philippine Depository & Trust Corp. and the Philippines Securities Settlement Corp. — Ted Cordero/VDS, GMA News