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PSE to raise P200B in 2014

The Philippine Stock Exchange (PSE) expects to play host to P200 billion worth of capital raising via the equities market this year, 14 percent higher than the P175 billion raised last year.

“Right now we’ve raised almost P52 billion. It’s fair to say that this is fueled by the requirement for banks to raise capital (to meet Basel III standards). They are the largest ones so far,” PSE president Hans B. Sicat said in an interview.

He added that “the branded consumer and retail sector will also continue to be a robust sector for us.” Capital raising activities for these firms will be spurred by the continuous demand to grow their business amidst the vibrant economy.

The PSE registered 10 initial public offerings last year: Philippine Business Bank, Asia United Bank Corporation, AG Finance, Inc., Harbor Star Shipping Services, Inc., Travellers International Hotel Group, Inc., Robinsons Retail Holdings, Inc., Discovery World Corporation and Concepcion Industrial Corporation.

Two companies, Del Monte Pacific Limited and First Metro Exchange Traded Fund listed by way of introduction. Addional capital was also raised by firms that conducted stock rights offerings.

“Despite the lack of capital raising activities during the third quarter, we still managed to come close to our target. A lot of the companies understandably went into a wait and see mode,” Sicat explained.

But in the last quarter, Sicat said “we all saw them coming back with their capital raising plans which only shows that the stock market remains to be a sound and compelling venue to generate funds.

The PSE has just approved its first IPO listing application for 2014, the P1.16-billion maiden offering of Double Dragon Properties Corporation of Jollibee’s Tony Tan Caktiong and Mang Inasal’s Edgar “Injap” Sia II.