Following the recent decline in the global equities market, the Philippine Stock Exchange said companies planning to conduct initial public offerings might defer their deals until market conditions improve.
“The volatility in the market may be a negative factor and this could make companies hesitant to pull the trigger,” PSE president and chief executive officer Hans Sicat.
Sicat however stressed that the microeconomic fundamentals of the country remains unchanged despite the recent massive sell-off in the Philippine equities market.
Before the market decline, PSE was expecting P100 billion worth of capital raising deals from three to five IPOs to happen over the short term period.
So far only two companies have conducted IPOs this year – Crown Asia Chemicals Corp., which raised P222 million in proceeds and SBS Philippines Corp., which generated P1.15 billion in proceeds.
One of the underwriters handling the P4.65-billion initial public offering of construction company Datem Inc. said the share sale would depend on market conditions.
Also in the pipeline this year are the P21.7 billion IPO of D.M. Wenceslao & Associates Inc. and the P6.1 billion IPO of Metro Retail Stores Group Inc.
PSE earlier target capital raising activities through the stock market to hit P200 billion next year as companies will likely continue to raise funds to finance expansion plans.