Photographer: Carlo Gabuco / Bloomberg
Photographer: Carlo Gabuco / Bloomberg
The The Philippine Stock Exchange is aiming for more companies to go public this year even as the economic environment “remains fragile,” according to President and CEO Ramon Monzon.
The stock exchange has a target for at least three companies and four property investment trusts to hold initial public offerings in 2021, Monzon said in a statement. More REITs are expected to list once the Securities and Exchange Commission approves proposed changes to the IPO rules of the boards of major enterprises and small enterprises, he said.
The Philippines is expected to start growing only in the second quarter of 2021, placing it among the slowest to recover from the pandemic of coronavirus that has wreaked havoc on the global economy. The central bank, which maintained its main interest rate last month at a low of 2%, has said it is ready to use a full range of tools to stimulate growth.
“Restoring investor confidence will remain a challenge,” Monzon said. The government’s plan to launch major vaccines in the second half could “encourage a strong reversal in corporate employment and thus allow the economy to slow down,” he said.
Last year, MerryMart Consumer Corp. grocery. broadband operator Converge ICT Solutions Inc. and real estate investment trust AREIT Inc. debuted on the exchange. Money raised totaled 104 billion pesos ($ 2.2 billion) last year, up 2.9% from 2019, Monzon said. IPOs accounted for 44.3 billion pesos of the total, and follow-up offers were 41.2 billion pesos.
More companies could return to the stock market like the Philippines recovering, the Chief said. The stock exchange also plans to implement short selling, and introduce new and thematic segment indices such as mid-cap and continental yield, he said.
“We hope these are new indexes it will involve the creation of new index-linked assets, ”said Monzon.
– Supported by Ian C Sayson