PSE's Sicat sees lower capital raising in bourse

Capital raising in the Philippine Stock Exchange (PSE) this year may not reach the P200 billion posted last year as companies planning to go public wait for improved market conditions, the local bourse's chief said Tuesday.

In an interview at the sidelines of the Asia CEO Forum, PSE president and chief executive officer Hans Sicat said September plays a key role in determining whether companies that previously deferred plans of an initial public offering will push through. “Let's see how September goes,” he said.

The PSE chief noted that September is an opportune time to explore fund raising plans in the bourse because foreign investors are back from vacation and concerns about the US Federal Reserve's dialing back bond purchases become more settled.

Sicat, however, said, “It could probably be hard now [to achieve the target]. The problem is if companies decide to hold their IPOs by mid-September, you might have a queuing problem.”

As of August 15, capital raised through the equities market plummeted 65.6 percent to P31.27 billion from P91.13 billion recorded in the same period last year as several companies deferred IPOs amid volatility in the financial markets.

Listed companies can also raise through the stock exchange also includes follow-on offerings, stock rights and private placements.

This year, Travellers International Hotel Group's P40-billion IPO as well as listing plans of Harbor Star Shipping Inc. and Discovery World Corp. were deferred to a later date.  

Meanwhile, the P42-billion share sale of Robinsons Retail Holdings Inc and P2.7-billion public offering of Concepcion Industries Inc. are also pending before the PSE.

Philippine Business Bank, Asia United Bank and AG Finance Inc. are the companies that underwent an IPO this year, while fruit producer Del Monte Philippines Ltd. debuted in the PSE without public offering or listing by way of introduction. — SOA/BM, GMA News