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Photographer: Carlo Gabuco / Bloomberg
Photographer: Carlo Gabuco / Bloomberg
the The Philippine Stock Exchange is targeting more companies to go public this year, even as the economic environment “remains fragile,” according to President and CEO Ramon Monzon.
The stock exchange is targeting at least three companies and four real estate investment trusts to make initial public offerings in 2021, Monzón said in a statement. More REITs are expected to list once the Securities and Exchange Commission approves the proposed changes to the IPO rules of the boards of major and small companies, he said.
The Philippines is forecast to start growing only in the second quarter of 2021, placing it among the slowest to recover from the coronavirus pandemic that has devastated the global economy. The central bank, which kept its key interest rate last month at a record low of 2%, has said it is ready to use a full range of tools to fuel growth.
“Restoring investor confidence will continue to be a challenge,” Monzón said. The government’s plan to start mass vaccination in the second half could “cause a strong rebound in corporate profits and thus allow the economy to take off,” he said.
Last year, grocer MerryMart Consumer Corp., broadband operator Converge ICT Solutions Inc. and The AREIT Inc. real estate investment trust made its public debut. The funds raised totaled 104 billion pesos (2.2 billion dollars) last year, 2.9% more than in 2019, Monzón said. IPOs represented 44.3 billion pesos of the total, while follow-up offers were 41.2 billion pesos.
More companies could return to the stock market like the Philippines recovers, said the CEO. The stock exchange also plans to implement short sales and introduce new thematic and sector indices such as mid-cap and high dividend yield, he said.
“Hopefully these new indices it will attract the creation of new index funds, ”said Monzón.
– With the assistance of Ian C Sayson
