Economic recovery, consumer confidence to boost IPOs this year: analyst

ABS-CBN News

Posted at Mar 31 2022 10:53 AM

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The continued economic recovery and returning consumer confidence would boost this year's anticipated initial public offerings, Sun Life Investment Management and Trust Corp’s president and CIO Michael Enriquez said on Thursday. 

"We’re looking forward as the economy continues to recover, the confidence of investors starts to shape up, I think we can see better reception for these IPO," Enriquez told ANC. 

In 2021, 11 successful IPOs were launched despite the COVID-19 pandemic.

Enriquez said IPOs are a good sign that businesses are willing to tap the equities market to fund their capital requirements. 

Investors are also anticipating more REITs (real estate investment trust) offering, which is a new investment asset that provides steady dividend yield. 

So far, Megaworld, Robinsons Corp, Filinvest Land, Citicore and Double Dragon were among those that have listed their REITs companies on the Philippine Stock Exchange.

PSE President Ramon Monzon earlier said the year 2021 was a "fantastic year" for capital raising.