CEBU CITY – The Philippine Stock Exchange Inc. (PSE) is urging small and medium enterprise (SME) players in Cebu to capitalize on the benefits of enlisting in the stock market as an alternative way of financing their business expansion.

“Cebu’s business community is home to some of the most successfully run businesses in the country.” said PSE President Val Antonio B. Suarez, who pointed out that “the growth potential is still high, but sadly, only a few companies take advantage of the stock market as a main source to increase capitalization.”

Suarez, who was in Cebu early this week together with investment bankers for a road-show in partnership with the Cebu Chamber of Commerce and Industry (CCCI), said that companies should examine properly the benefits they can get from entering into Initial Public Offerings (IPOs), rather than holding on to the impression that doing so requires a lot of requirements.

“The requirements of the Exchange are not insurmountable, but doable. The disclosure requirement is important in order to provide transparency to investors,” Suarez said in an interview.

He added, though that despite the active stance of the PSE to attract companies to register in the Stock Exchange in the last few years, only a few Cebu-based corporations have entered the equity market.

According to Suarez, of the 250 listed companies at the PSE, only a handful of Cebu-based businesses are benefiting as players in the stock market. These include Aboitiz Equity Ventures,  Aboitiz Power, Cebu Holdings Inc., Cebu Property Ventures Development Corp., Waterfront Philippines Inc., among others firms.

He said Cebu Pacific is set to enter into an Initial Public Offering (IPO) before the 2010 elections this May.

Currently, however, Suarez said the PSE has yet to rely on investment bankers such as Vicsal Investment Inc., and First Metro Investment Corporation, to drive interest among local companies to get into the stock market.