The Philippine Stock Exchange Inc. (PSE) said it could raise about P170 billion in capital funds this year through initial public offerings (IPOs), private placements and preferred share sales, about 20 percent higher than the P140 billion raised last year.
PSE president and CEO Ramon S. Monzon said a large share of the amount is expected to come from the planned IPO of GCash and the listing of PNB Holdings Corp.
The first listing this year may be PNB Holdings, valued at around P56 billion. The company, which holds the spun-off real estate assets of Philippine National Bank, has already applied for listing. Its shares were distributed to shareholders as property dividends, allowing it to list without an IPO.
The PSE is also expecting Globe Telecom Inc. to file for a P25 billion preferred share issuance and listing.
Monzon said the exchange is targeting at least four IPOs this year, with GCash as the biggest potential deal. He said the GCash IPO will proceed once the company reaches its target valuation, as some strategic investors plan to exit only if their price targets are met.
GCash has asked for a lower public float requirement since only exiting investors will sell shares in the IPO. Monzon said the Securities and Exchange Commission is moving to lower the minimum public ownership to 12 percent for companies with a market value above P150 billion.
To attract smaller firms, the PSE is proposing to cut the minimum IPO size to P500 million from P1 billion and reduce the minimum number of shareholders to 200 from 1,000.
Monzon said the PSE and the SEC are pushing policy reforms to encourage more listings, including updated rules on real estate investment trusts that now allow infrastructure assets such as toll roads, airports and telecom towers.
The PSE is also reviewing its disclosure rules to make them less intimidating. Monzon said minor disclosure violations that do not affect stock prices may initially be met with warnings instead of immediate penalties, to make it easier for companies to stay listed.
