The Philippine Stock Exchange (PSE) is forecasting P120 billion in capital-raising activities for 2025, a slight revision from previous estimate of P150 billion but still a notable increase compared to the current year. PSE president and CEO Ramon S. Monzon made the announcement at the recent SEC-PSE corporate governance forum, where he also indicated that six initial public offering (IPO) exercises could generate up to P40 billion.
“Next year, we’re aiming for P120 billion in capital raising, which is a step up from this year’s P79 billion,” Monzon said. “While market sentiment has been somewhat dampened following the outcome of the U.S. election, we remain optimistic.”
The PSE’s capital-raising activities include IPOs, follow-on offerings, stock rights offerings, and private placements of both common and preferred shares. Monzon’s earlier estimated capital raising of P150 billion for 2025 but acknowledged the uncertainty in the global political landscape—particularly following U.S. President Donald Trump’s election win—has tempered some of the market’s growth potential.
Monzon said that Trump’s policies, including plans to deport illegal immigrants and penalize U.S. companies that outsource jobs, contribute to a more cautious market environment. “These policies, especially regarding immigration and outsourcing, could have a ripple effect on the Philippine economy,” he said, citing concerns over potential declines in remittances and its impact on the IT-BPM sector that employs approximately 1.9 million people.
Despite these challenges, the PSE remains hopeful for a strong performance in 2025, with several high-profile IPOs lined up, including SM Prime Holdings Inc.’s real estate investment trust (REIT), Prime Infrastructure Capital Inc. led by port magnate Enrique Razon, mobile wallet operator GCash, and water utility firm Maynilad Water Services Inc.
The PSE earlier projected six IPOs for 2024, but only three managed to launch in the face of market headwinds: OceanaGold (Philippines) Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp. The fourth planned IPO, that of Cebu-based fuel retailer Top Line Business Development Corp., has been postponed to 2025 due to a market downturn following Trump’s election.
While 2024 has proven challenging, the outlook for 2025 remains optimistic, with the PSE banking on a recovery in market sentiment and a continued pipeline of IPOs and capital-raising opportunities.
