PSE eyes 4-5 IPOs in first half of 2014


Posted at Mar 14 2014 02:29 PM | Updated as of Mar 14 2014 10:29 PM

MANILA, Philippines - The Philippine Stock Exchange expects four to five companies to conduct initial public offerings (IPO) in the first half of 2014.

"Market liquidity seems to be flowing back to our economy. That is
healthy. The panic over emerging markets seems to be less now. Now, it is time to focus on fundamentals," PSE president and chief executive officer Hans Sicat said.

Three companies have pending listing applications for IPO --DoubleDragon Properties Inc., Century Pacific Foods and LBC Express Inc.

DoubleDragon Properties, which is owned by Jollibee chairman Tony Tan Caktiong and Mang Inasal founder Edgar "Injap" Sia II, is planning a P1.16 billion IPO.

(LINK to "DoubleDragon Properties"

The Araneta family's LBC Express Inc., a leading courier and freight forwarding services company, is also planning a P7 billion IPO.

Capital raising activities at the PSE surged 1,422% to P52 billion from January to March 12, from P3.4 billion in the same period a year ago.

But net foreign transaction as of March 12 declined 85% to P6.84 billion, while average trading value fell 30% to P7.03 billion. The drop in net foreign transactions and trading value was attributed to the sell-off in emerging markets during the period.

However, foreign funds started flowing back into the market, boosting the PSEi back to the 6,500 level.

This year, Sicat is expecting capital raising activities to reach P200 billion, from P175 billion posted in 2013.