Philippine Stock Exchange Maintains 2024 IPO and Capital Raising Targets Despite Market Slowdown

The Philippine Stock Exchange maintains its 2024 IPO and capital raising targets despite market slowdown, reflecting confidence in the country's economic growth potential.

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Mahnoor Jehangir
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Philippine Stock Exchange Maintains 2024 IPO and Capital Raising Targets Despite Market Slowdown

Philippine Stock Exchange Maintains 2024 IPO and Capital Raising Targets Despite Market Slowdown

The Philippine Stock Exchange (PSE) is maintaining its target of 6 initial public offerings (IPOs) and P175 billion in capital raised for 2024, despite a recent market slowdown caused by global influences.

PSE President and CEO Ramon S. Monzon expressed optimism that the market will "eventually turn around" following the decline, which he attributed to escalating geopolitical tensions overseas.

The benchmark Philippine Stock Exchange Index (PSEi) ended a nine-day losing streak on April 19, but retreated again by the end of the week. Monzon said the PSE is still targeting 6 IPOs this year, with OceanaGold Philippines, Inc. scheduled for a P7.9 billion IPO on May 13, and Citicore Renewable Energy Corp. lined up for a May 31 listing.

Last year, the PSE saw only 3 IPOs, down from 9 in 2022, due to high inflation, interest rates, and subdued economic growth. However, the bourse has recently cleared the IPOs of Citicore Renewable Energy Corp. (CREC) and OceanaGold (Philippines) Inc., which are set for listings in the second quarter and May 2024, respectively.

Why this matters: The PSE's commitment to its IPO and capital raising targets despite market challenges reflects confidence in the long-term growth potential of the Philippine economy and its capital markets. Successful IPOs and fundraising activities can provide a boost to the country's economic recovery and development efforts.

Monzon noted that while there was a drop in IPOs from 9 in 2022 to only 3 in 2023, he is in talks with other companies for potential listings. "We are maintaining the target," he stated, adding that the PSE has faced challenges before but has rebounded. The PSEi index has dropped 6.38% in the past four weeks due to geopolitical risks and concerns over higher interest rates, but is down only 0.11% since the start of the year.

Key Takeaways

  • PSE maintains 2024 targets of 6 IPOs and ₱175B capital raised.
  • OceanaGold Philippines and Citicore Renewable Energy set for Q2 2024 IPOs.
  • PSE confident in long-term growth potential despite recent market slowdown.
  • PSE had 3 IPOs in 2023, down from 9 in 2022 due to economic factors.
  • PSEi index down 6.38% in 4 weeks due to geopolitical risks and higher rates.