MANILA — Ten companies are expected to debut in the local equities market next year, encouraged by the country’s strong macroeconomic fundamentals even amid potential global headwinds.
“We are estimating 10 in total IPOs (initial public offerings),” Philippine Stock Exchange (PSE) President Hans Sicat told reporters.
Sicat hoped that more branded consumer and manufacturing-related companies would list their shares on the local bourse next year.
He said IPOs will be driven by companies’ increased expansion plans and relatively low interest rates that are expected to also bring down valuations on the exchange.
“The background will be relatively low interest rates and high consumption level. With that, it should augur well for at least a solid 2015 following this good 2014. We are also cautiously optimistic despite the potential headwinds from around the globe (and) that the Philippines will be able to remain flexible,” he added.
Apart from IPOs, Sicat said the Php200-billion PSE target for capital fundraising next year will be boosted by more follow-on offerings and backdoor listings.
“I think it will be the same story like this year and last year. You have a base level of IPOs and maybe a few backdoors. But follow-on offerings probably will continue to be the bulk (of the fund),” he noted.
Sicat said there is also a lot of need for companies to raise capital as they embark on their expansion plans.