Two more companies, Viva Communications Inc. and W Group, plan to conduct initial public offerings (IPOs), depending on market conditions.
BDO Capital and Investments Corp. president Eduardo Francisco said the two companies are monitoring market conditions to determine the right time of their maiden share offerings.
“These two IPOs are scheduled for this year. But the challenge right now is if the market reception will be there. Will the local market be strong enough,” said Francisco.
“Everything is fluid at the moment. Bonds are easier, especially if peso, because interest rates are going up. But for equity, sometimes even if you lower the IPO price and the IPO size, investors are still not receptive,” he added.
The bellwether Philippine Stock Exchange Index is down 10.68 percent year-to-date on fears of a possible global economic recession caused by rising oil and commodity prices.
Francisco said W Group, a premier developer of boutique office buildings owned by the Wee family, is also planning to conduct an IPO through a real estate investment trust (REIT) offering.
W Group is the holding company behind properties like W CityCenter, Citi Plaza, and W Fifth Avenue, W Global City, W High Street and W Tower. Its office projects are located in Bonifacio Global City in Taguig City.
The Wee family has expanded its portfolio of companies. It is now engaged in business in a wide range of industries, including seaweed and carrageenan, investments and real estate. Its core businesses include W Hydrocolloids Inc., Marine Resources Development Corp., Agro Commodities Export Inc., Jobs and Careers Inc. and First Marcel Properties Inc.
Meanwhile Viva Communications, a film and entertainment outfit established by Vicente del Rosario Jr., originally planned to conduct an IPO in 2007. It shelved the plans, however, amid the global financial crisis.
Then in 2020, the company revived the IPO plan in time for the expansion of its content production. It again deferred the plan because of the COVID-19 pandemic.
Philippine Stock Exchange president Ramon Monzon earlier said 2022 would be a record breaking year in terms of IPOs despite the current market conditions.
Eight companies in the first half of the year conducted IPOs, namely Haus Talk Inc., Figaro Coffee Group Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group Inc., Raslag Corp., VistaREIT Inc. and Balai ni Fruitas Inc. The firms raised a combined P62 billion in fresh capital.
Three more companies have pending IPO applications―ORCA Cold Chain Solutions of businessman Michael Cosiquien, Prime Infrastructure Capital Inc. of port tycoon Enrique Razon Jr. and gadgets retailer Upson International Inc.