The Market Monitor Minding the Nation's Business
The Philippine Stock Exchange (PSE) is optimistic about hitting its P200-billion target capital to be raised this year despite the weak market, a bourse official said.
“What we expect and still help the pipeline are the follow-on and stock rights offerings, additional listings…. We are also seeing right now activities in the backdoor listing segment. We are on track in terms of total projection,” PSE chief operating officer Roel Refran said.
Refran said more companies are expected to raise capital in the second half of the year.
“It is still a good year for us [though] year-to-date, our growth is 5 percent compared to last year phenomenal [growth] at 22 percent. It’s an election year next year so it is always good for markets, the year preceding the election. It is always demonstrated by pick up in consumption,” he said.
Refran bared that there are two to three pending capital-raising applications. While he declined to identify these companies, he said these would come primarily from the consumer-related and manufacturing sectors. “Some companies are aggressive, [they may launch an IPO in the] third quarter,” he noted.
The PSE official said only plastic compounds producer Crown Asia Chemicals Corp. debuted on the PSE so far this year, which was able to raise over P200 million from its initial public offering (IPO).
“I think the market is still looking for bigger offerings,” Refran added.
The local stock market has been volatile recently as the debt crisis in Greece continued.