Only two more IPOs expected in 2025 as firms delay plans

Only about two more companies are expected to go public this year as a number of the firms that have earlier signified interest to make their debut have already delayed such plans due to the prevailing market conditions.

According to BDO Capital and Investment Corp. president Eduardo Francisco, he is optimistic that two more firms could push through with their initial public offerings (IPOs) this year — west zone concessionaire Maynilad Water Services Inc., and GCash operator Globe Fintech Innovations Inc. (Mynt).

“It’s very hard in today’s market because those are two big deals. We’re hoping Maynilad will push through in the next month. Baka that might even be the last one. We’ll see,” he told GMA News Online in an interview on the sidelines of the MAP International CEO Conference in Taguig City.

Maynilad secured the approval of the Securities and Exchange Commission (SEC) to proceed with its IPO in July, but has pushed this back to October. It plans to offer 1.680 million common shares at up to P20 apiece, with an overallotment option of up to 249,047,600 shares and a preferential offer of up to 29,904,800 shares.

Francisco, who earlier projected up to 10 IPOs in 2025, attributed the postponement to the prevailing market conditions. Only one firm has continued with its IPO so far this year, Top Line Business Development Corp. which had its public listing in April

“It’s not naman a reflection of the local issuers. Companies are doing well, but the reason some of them are being postponed kasi nga (is because) the market is bad and we need foreign investors. Foreign investors naman have not been coming in,” Francisco said.

“Some of the deals are big, you need foreign (investors). So if the foreign (investors) are not coming in, and then to entice them to come in, ‘yung presyong gusto nila masyadong mababa (the price they want is too low), it’s a disservice for the issuers kaya nagpo-postpone (which is why they postpone),” he added.

Francisco said InfiniVAN, a Japan-affiliated digital solutions and telecommunications firm, is one of the firms expected to delay its planned IPO to next year: “Parang (Seems like) we’re pushing back to next year na lang (instead).”

Another that has also been reported to defer its IPO is Hann Holdings Inc., which was supposed to offer 500 million shares priced at P23.60 each, and an overallotment option of up to 50 million shares.

The Philippine Stock Exchange (PSE), for its part, earlier said it expects six IPOs this year, after only three pushed through in 2024 — OceanaGold Philippines Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.. — BAP, GMA Integrated News