Dearth of IPOs seen to end
MANILA, Philippines – The Philippine Stock Exchange index has recently been flirting with new all time highs, breaching the 8,000 mark which industry observers say may finally put an end to the dearth of initial public offerings (IPOs).
The stock market, while it continues to attract companies, has yet to see the return of the IPO fever of the 1990s or even prior to the 2008 global financial crisis when there were double-digit listings.
According to PwC Philippines, from 2008 to 2009, the Philippines only had two IPOs before they averaged four to five annually.
“In the Philippines, the IPO market peaked with 12 listings in 2007 before the global financial crisis struck in 2008,” it said.
In 1994, prior to the Asian financial crisis of 1997, the Philippines saw 21 companies go public.
But things may soon change, said PSE chief operating officer Roel Refran, as the exchange continues to lure private companies to go public or encourage listed ones to go back to the market.
This year, the PSE hopes to see at least eight or twice the number of companies list on the exchange.
Refran said IPO numbers in the Philippines have room to improve and that the PSE is stepping up efforts to encourage companies to go back to the market and those that are still in the informal sector to formalize and list.
Reggie Cariaso, BPI senior managing director and co-head for Investment Banking of BPI Capital, said companies would indeed soon find the need to go public. |
