Equity deals among companies listed on the Philippine Stock Exchange reached P61.92 billion in the first half of the year, 49.4 percent lower than the amount of fresh capital raised in the same period in 2021 due to external headwinds and issues on the local front.
The PSE recorded eight initial public offerings during the period, matching the same number of IPOs for the entire 2021. These were Haus Talk, Inc., Figaro Coffee Group, Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group, Raslag Corp., VistaREIT and Balai ni Fruitas.
Of the eight IPOs, five were listed on the main board while three joined the Small, Medium and Emerging Board.
“Given the lineup of maiden offers in the next half of the year, we may see a 26 year high in terms of the number of IPOs in a year,” said PSE president and CEO Ramon S. Monzon.
There were also four companies that raised funds via a private placement while one company issued shares to existing shareholders.
“The record fund raising in 2021 will be difficult to break because of the sizable amount that was generated by the Monde Nissin Corporation IPO. We have a robust pipeline of public offerings in the second half and if all of these materialize, capital raising may still reach the P 200 billion mark,” Monzon said.
“To sustain the listing activities at the PSE, we now have in place rules on initial listing through a preferred share offering that gives companies the flexibility to tap the equities market by selling preferred shares instead of common shares. The Lock-Up Rule has also been amended recently to give select entities an early exit mechanism when a company they invested in goes public. This frees up capital of alternative investment funds to reinvest in other target firms and increases the number of available shares to IPO investors,” he added.
In terms of trading activity, the daily average value turnover was at Ph7.52 billion as of June 30, down by 16.1 percent year-on-year. Foreign investors were net sellers at P40.73 billion, lower than the P77.86 billion net foreign selling registered in the same period in 2021.