PSE expects companies to raise P200 billion in 2015

by Neil Jerome Morales, Reuters

Posted at Dec 12 2014 03:26 PM | Updated as of Dec 12 2014 11:26 PM

MANILA - The Philippine Stock Exchange targets facilitating P200 billion ($4.49 billion) worth of capital raising next year as listed companies seek fresh funds for expansion amid strong macroeconomic fundamentals, PSE President Hans Sicat said.

Ten companies are seen to debut in the stock market next year through initial public offering (IPO) and backdoor listing, the top official of the PSE said.

"There's a lot of need for companies to raise capital because of the need to expand," Sicat told reporters late Thursday.

A number of fundraising programs, including the up to $172 million IPO of real estate firm Profriends Group Inc, were pushed back to next year, prompting the PSE to forecast a shortfall in its P200 billion target for this year, Sicat said.

Capital raised this year in the local bourse reached P128 billion as of end-September.

But capital raising activities will likely reach the P200 billion level next year driven by follow-on offerings, including the up to $336 million preferred share sale of San Miguel Pure Foods Co Inc.

"What we're hoping for is that publicly listed companies will continue to demonstrate strength in terms of increasing their revenue and net income, which is the PSE story over the last 4-5 years," said Sicat.

Sicat said he expects the consumption-driven economy to support growth despite global headwinds.

Consolidated revenue of locally listed companies climbed 28.8 percent to P3.27 trillion in the first half, while aggregate net income rose 10.8 percent to P311.57 billion from a year earlier.

Seven companies have debuted in the PSE this year, increasing the number of listed firms to 263. The broader index has gained 21 percent year-to-date.