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BusinessWorld

PSE sees P203.4-B capital raising as two IPOs remain

THE Philippine Stock Exchange (PSE) expects capital raising through the equities market to reach about P203.4 billion this year, with two initial public offerings (IPOs) still expected before yearend, PSE President and Chief Executive Officer Ramon S. Monzon said.

Context & Analysis

A healthy capital-raising pipeline matters because it tells us whether the PSE is functioning as a practical source of growth finance, not just a venue for trading existing shares. For Philippine companies, access to public equity can reduce dependence on bank loans, support expansion projects, fund digital systems, and provide a currency for mergers or strategic investments. It also gives investors a way to allocate local savings into productive assets rather than leaving them in low-yield deposits or chasing imported financial products.

The broader context is that the Philippines still has a deep and mature banking system, but corporate financing increasingly depends on market access when rates are high or credit standards tighten. Listed companies can raise equity even when borrowing costs pressure margins, while new entrants can gain visibility, credibility, and a benchmark valuation. For business owners, a more active PSE ecosystem can improve peer comparison, supplier and customer confidence, and employee retention through share-based incentives.

Regulators will likely watch whether the pipeline translates into sustained investor participation, not merely a burst of listings. The SEC’s role in approving offerings, enforcing disclosure, and maintaining listing standards is central to credibility. If companies use proceeds for operations that generate returns, the PSE gains depth; if they raise capital without clear strategic purpose, it can dilute shareholder value and weaken confidence.

For consumers, the effect is indirect but real. A stronger equity market can support corporate investment in services, technology, and employment, while also giving households more options for long-term saving. The key question ahead is whether new listings are well received, whether liquidity remains adequate, and whether domestic investors keep participating as global risk conditions change.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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