PSE hikes capital-raising target to over P186 billion this year

By Revin Mikhael D. Ochave, Reporter

THE PHILIPPINE Stock Exchange, Inc. (PSE) once again raised its target for capital raising this year, as the stock market operator now expects the amount to reach over P186 billion.

PSE President and Chief Executive Officer (CEO) Ramon S. Monzon said in a virtual briefing on Saturday that the local bourse is projected to raise P186.3 billion in capital this year, with P123.7 billion expected in the second half.

“For the first half of the year, our capital raising was about P62.6 billion, that’s one initial public offering (IPO), two follow-on offerings (FOO), and about six private placements,” he said.

“For the second half, based on the applications we’ve received to date, we expect an additional capital-raising activity of about P123.7 billion, composed of two IPOs, two FOOs, one stock rights offering, and one listing of convertible warrants,” he added.

This is the second time the PSE hiked its capital-raising target. In May, Mr. Monzon raised the target to P170 billion from the initial target of P120 billion.

In 2024, the PSE raised P82.4 billion in capital, down by 42% from the P140.95 billion raised in 2023.

Mr. Monzon said the PSE is awaiting the IPO of Pangilinan-led water provider Maynilad Water Services, Inc. and Hann Holdings, Inc., the operator of Hann Resorts in Pampanga.

“For the IPOs, we have two filings with us that we’ve actually processed already, the filing of Maynilad, and we are now processing the filing of Hann Resorts,” he said.

“Other than those two, we don’t have any filings yet. Although I hear talks of some underwriters or investment bankers that they have one or two that they’re working on at the moment. But they have not filed any applications,” he added.

The PSE has only seen one IPO this year so far, with the listing of Cebu-based fuel retailer Top Line Business Development Corp. in April.

Despite headwinds such as US tariff uncertainty and geopolitical tensions, Mr. Monzon said companies have to find the right time to conduct capital-raising activities.

“Locally, our listed companies, the earnings are really very consistent and very exceptional. It’s just a question of time. We’re not operating in a vacuum. We react to global markets,” he said.

“We know the headwinds we’re facing. We have this Trump tariff issue, we have this Middle East issue, the attack of Israel and Iran that could be a potential threat to global oil supplies,” he added.

DOABLE TARGET
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the PSE’s latest capital-raising target is achievable as market conditions are improving.

“It is possible given better market conditions in the US, global, and local stock markets that would allow issuers of shares to raise funds at a higher price and get more proceeds,” he said.

On Friday, the bellwether PSE index (PSEi) fell by 0.05% or 3.32 points to 6,459.88, while the broader all shares index went up by 0.002% or 0.07 point to 3,812.53.

The PSEi climbed to the 6,500 level for the first time in nearly two months on July 9, when it rose by 1.1% to 6,504.34.

“The target is doable given the current and expected pipeline of equity deals. I think there’s a chance of additional deals that could even help the PSE exceed its target, assuming they are all completed within the year,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

Meanwhile, the PSE board of directors was reinstated during the market operator’s annual stockholders’ meeting on July 12.

Mr. Monzon was re-elected as president and CEO, while Jose T. Pardo was re-elected as chairman to lead the 15-member PSE board.

“The fresh mandate given to the PSE board will ensure continuity in the reforms and initiatives we have started pursuing to attract more listings and introduce new products and services that will enhance liquidity in the capital market,” Mr. Pardo said.

“The board will remain steadfast in providing guidance and oversight in establishing clear policies and direction for the exchange, including the integration of the PSE and the Philippine Dealing System Holdings Corp., which offers significant opportunities for the development of the local capital market,” he added.

Also re-elected as PSE independent directors were retired Chief Justice Teresita Leonardo De Castro, Peter B. Favila, Andrew Jerome T. Gan, and Vicente L. Panlilio.

Re-elected as broker directors were Diosdado M. Arroyo, Eddie T. Gobing, Anthony M. Te, Wilson L. Sy, and Ma. Vivian Yuchengco.

In addition, sectoral directors were also re-elected, namely, Marilyn Victorio-Aquino (representing issuers), Ferdinand K. Constantino and Jose Arnulfo A. Veloso (representing investors), and Edgardo G. Lacson (representing other market participants).

The 15-member PSE board consists of one president-director, not more than five broker directors, at least five independent directors, and at least four directors representing the interests of issuers, investors, and other market participants.