The Philippine Stock Exchange said it expects eight to 10 companies to go public next year, including two that recently deferred their plans amid the current market volatility.
PSE president Hans Sicat said companies would have an opportunity to conduct IPOs in the first quarter of 2016, just before the May presidential elections, or in the third quarter next year, after the election period.
“Some may say they want to do most of the deals in the first quarter when funds are allocated and elections are not at the back of people’s minds,” Sicat said.
“There might be a slight slowdown in the second quarter because they are waiting for election results and another round of activity in the third quarter,” he said.
Sicat said the target of eight to 10 IPOs for 2016 would include companies planning backdoor listing.
Two property and construction firms, including Datem Inc. and DM Wenceslao & Associates Inc., earlier decided to defer their planned IPOs to 2016 due to volatile market conditions.
Datem was planning to raise P4.65 billion from its maiden share sale while DM Wenceslao was targeting to generate as much as P12.3 billion in proceeds from the IPO.
Other companies with pending IPO applications with the corporate regulator were Pointwest Technologies Corp. (P2.09 billion); TVI Resource Development Phils. Inc. (P1.51 billion); Philippine Primark Properties Inc. (P1.2 billion); Gweilo Corp. (P95 million); Philstocks Financial Inc. (P188 million); and Green Power Panay Philippines Inc. (P290 million).
BDO Capital and Investments Corp. president Eduardo Franciso said while many companies were still interested in listing their shares in the stock market, the average size of the IPOs would most likely be less than P1 billion.
“There are still opportunities for IPOs but most of these are bite-size that will be geared towards the domestic investors,” Francisco said.
Only four IPOs were completed this year, including those of SBS Philippines Corp. (P1.15 billion); Crown Asia Chemicals Corp. (P222.7 million); Metro Retail Stores Group Inc. (P5.6 billion); and Italpinas Development Corp. (P242 million).