The Philippine Stock Exchange Inc. (PSE) is projecting significant growth in capital raising, anticipating totals between P140 billion and P150 billion in 2025, buoyed by several high-profile initial public offerings (IPOs).
PSE president and CEO Ramon Monzon revealed that the exchange expects three to four major IPOs next year, along with additional offerings from small and medium-sized enterprises. Monzon said the target for new listings in 2025 stands at six companies.
Among the potential blockbusters include Maynilad Water Services Inc., a concessionaire operated by Metro Pacific Investments Corp., DMCI Holdings Inc., and Japan’s Marubeni Corp. Monzon said Maynilad could raise up to $1 billion when it formally applies for an IPO. “I’ve already talked to them,” he said.
However, not all anticipated deals could materialize. Monzon indicated that the SM group is unlikely to proceed with its real estate investment trust (REIT) program next year, and Enrique Razon Jr.’s Prime Infrastructure Capital Inc. remains in the early stages of planning its own IPO.
The potential listing of GCash operator Mynt also faces challenges, particularly its current valuation of $5 billion that Monzon suggests could increase to $8 billion with new investments. This would imply a minimum public float of approximately P1.6 billion, based on PSE regulations.
The upcoming capital raises will also encompass follow-on offerings, stock rights offers, and private placements. For this year, the PSE anticipates capital raising of only around P89 billion — significantly down from last year’s P141 billion. To date, the PSE has seen three IPOs, one stock rights offer, six follow-on offerings, and seven private placements.
Additionally, the Securities and Exchange Commission has approved the IPO of Top Line Business Development Corp., a Cebu-based gas station operator, for up to P2.87 billion, scheduled for listing next month. Its listing will mark the fourth IPO for the year, following those of OceanaGold (Philippines) Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.
In financial results, the PSE reported a 4 percent decline in net income in the first half of the year, totaling P398.02 million, down from P417.51 million in the same period last year. Operating revenue also fell by 2 percent, attributed to lower trading values and listing-related revenue, with a decrease in income from service and transaction fees further impacting its bottom line.
