Philippine Stock Exchange sees companies raise $3.6 billion in capital markets this year

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MANILA — The Philippine stock operator expects companies to raise 200 billion pesos ($3.6 billion) in capital markets this year through a strong pipeline of listings and share sales, despite market volatility, its chairman said on Saturday.

Philippine businesses, including renewable energy firms, are pursuing expansion plans this year, banking on an economic recovery from the COVID-19 pandemic.

« At the moment, we cannot break the same record as last year, » Philippine Stock Exchange Chairman and CEO Ramon Monzon told reporters. « We hope that we can at least reach the level of 200 billion pesos. »

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Last year, a record $234.5 billion was raised through IPOs, including the record $1 billion listing of food maker Monde Nissin Corp, and the sale of shares existing, more than double the 104 billion pesos in 2020.

By the end of July, the companies had raised 76 billion pesos on the stock market, with six initial public offerings (IPOs) and follow-up stock sales underway, according to PSE data.

But the PES is closely watching a potential postponement of equity sales as market volume and performance remain tepid, Monzon said.

The broader Philippines index has fallen 5.9% this year, weighed down by a weak peso and high inflation, making it the region’s second-worst performer, after Vietnam.

($1 = 55.66 Philippine pesos) (Reporting by Neil Jerome Morales; Editing by William Mallard)