Philippine Stock Exchange (PSE) President Hans Sicat told reporters more companies engaged in real estate and consumer/retail sectors are expected to launch their initial public offering (IPO) on the local bourse next year.
Eight to 10 companies are expected to debut in the local equities stock market in 2016, as they ramp up expansion plans in a bet on the country’s economic growth despite global headwinds.
“Elections are good for consumer spending so that sector always benefit. Media (industry) benefits quite well from elections. And I think even the current increase of government spending in infrastructure-related projects and all other infrastructure-related projects of the private sector are going to do well. These means that you have a lot of positive multiplier effects for the economy,” he noted.
Sicat expects more listings in the first quarter, a month prior to presidential elections in May, including those of Datem Inc. and DM Wenceslao and Associates Inc. which have reset their IPOs for 2016.
The head of the exchange said the IPOs will be driven by companies’ plans to increase their footprints across the country.
Apart from IPOs, Sicat said private placements, follow-on offerings and backdoor listings can boost next year’s capital fund-raising initiative of the PSE.
“I think, it (P200 billion) would be a good target but we have not officially set that target yet,” he stressed.
In 2015, Sicat expects raising P185 billion in capital, lower than P200-billion target, amid delayed IPOs. (PNA)
- Pandemic American covidiot spring breakers help spread the virus - March 27, 2020
- PANDEMIC: WHO turns political EXCLUDES TAIWAN from novel coronavirus ASSISTANCE - January 31, 2020
- PANDEMIC: DOH confirms first case of novel CORONAVIRUS in PHILIPPINES - January 30, 2020