Despite the challenging financial markets amidst the ongoing COVID-19 pandemic and soaring inflation, the Philippines is seeing a resurgence in capital raising by the country’s corporations as the economy primes itself for recovery.
The Philippine Stock Exchange (PSE) reported that companies raised a record P234.48 billion at the stock exchange in 2021, surpassing the previous high of P228.33 billion in 2012. The PSE ended the year with eight initial public offerings (IPOs), 11 follow-on offerings, four stock rights offerings and eight private placements.
In a July interview, PSE President and Chief Executive Officer Ramon S. Monzon said the PSE is again looking forward to a record number of IPOs in 2022. The eight IPOs in the first semester have already matched the same number of offerings for the entire 2021. To support this increasing trend of public issues, the Philippine Stock Exchange has organized the business forum entitled, “Road to IPO 2022,” with the participation of the Securities and Exchange Commission and the Department of Trade & Industry.
The forum is scheduled today, Sept. 15, 2022, from 10:00 a.m. to 5:00 p.m. Prominent speakers include PSE President Ramon S. Monzon and SEC Chairman Emil S. Aquino. One of the investment houses selected to participate in the forum is Investment & Capital Corporation of the Philippines (ICCP), among the oldest Investment houses in the country that offers a full range of investment services from debt capital and equity markets to financial advisory services including mergers & acquisitions. ICCP Managing Director Mariano Ocampo shares IPO readiness tips during the forum entitled, “Road to IPO 2022.”
ICCP has joined the call for more Philippine companies to tap the capital markets to finance and achieve sustainable growth. As one of the most trusted independent investment houses in the country, ICCP has successfully mentored companies in their foray into the local bourse.
In 2021, the company was joint lead underwriter for the P14.7-billion IPO of DDMPR REIT, Inc. and the P15.3-billion stock market debut of MREIT, Inc. ICCP was also the sole underwriter and issue manager for the P1-billion FOO of Apollo Global Capital, Inc. — the first offshore iron ore mining company in the Philippines.
This year, ICCP was the sole underwriter and issue manager for the P750-million offer of Haustalk, Inc. — the country’s first IPO of 2022 and the first small-and-medium enterprise (SME) listing under the new SME Listing Rules of the PSE.
This was followed-up by the P6.4-billion IPO of Citicore Energy REIT Corp. (CREIT), the country’s first energy-focused REIT, where ICCP served as underwriter. The investment house was recently engaged as sole issue coordinator, joint lead underwriter and issue manager for the IPO of Alternergy Holdings Corp. — a renewable energy company with a diversified portfolio of wind, solar & run of river hydro.
“We are happy to be a contributor in revving up this engine of growth for the economy, particularly for renewable energy, agri supply logistics, financial inclusion and climate finance. The IPO is not just for the big corporates but could also be tapped by SMEs, project proponents,” said ICCP President & CEO Valentino S. Bagatsing. “We stand ready to guide more businesses prepare to tap the local equity and debt markets. The capital markets should be utilized as a catalyst for job generating PPPs and be a valuable instrument for funding climate adaptation. We are inspired by the SEC & the PSE for their continued effort of democratizing the capital markets while ensuring transparency & accountable disclosure,” added Mr. Bagatsing.
ICCP believes that IPOs is a viable option to raise capital to fund the expansion businesses and institutionalizing ESG initiatives. Independent investment houses like ICCP have a strong role in structuring innovative ways of assisting corporations navigate the process of tapping the Philippine capital markets.
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