“`html<\/p>\n
By Revin Mikhael D. Ochave, <\/b>Reporter<\/i><\/p>\n
THE Philippine Stock Exchange, Inc. (PSE) is elevating its capital-raising objective this year to P170 billion from P120 billion, up from the P82.4 billion actually gathered last year, amidst a reduction in tensions from the trade conflict between the world\u2019s two largest economies that had sparked concerns of a global downturn.<\/p>\n
The revised aim is derived from capital-raising initiatives that have been submitted and does not yet account for GCash\u2019s intended initial public offering (IPO), as stated by PSE President and Chief Executive Officer Ramon S. Monzon during a virtual press conference last week. <\/span><\/p>\n \u201cWe anticipate this year to be a notably successful year for capital raising at PSE,\u201d he remarked.<\/span><\/p>\n Mr. Monzon indicated that capital raised at the PSE had attained P42.42 billion as of May 14.<\/p>\n Prominent IPOs on the horizon include those from west zone water provider Maynilad Water Services, Inc. and mobile wallet service GCash.<\/span><\/p>\n \u201cI\u2019m particularly focused on IPOs, follow-on offerings, stock rights offerings, and private placements since ultimately, the exchange serves as the venue for companies to <\/span>raise funds,\u201d remarked the PSE head.<\/span><\/p>\n Mr. Monzon suggested that GCash may proceed with its IPO later this year but noted that no application had been submitted yet.<\/p>\n \u201cGCash has been in discussions with us,\u201d he mentioned. \u201cWhile a formal application has yet to be filed, I\u2019m aware they are preparing for an IPO later this year.\u201d<\/p>\n \u201cRegarding the specific timing, we are uncertain. There are several matters they are attempting to resolve, primarily the valuation and deciding the appropriate size of the IPO that the market can accommodate,\u201d he added.<\/span><\/p>\n Globe Telecom, Inc., which possesses a 36% share in Globe Fintech Innovations, Inc. (Mynt), owner of GCash operator G-Xchange, Inc., stated last month that its IPO for the e-wallet would move forward, although the timing is still unclear due to market fluctuations resulting from US tariffs.<\/p>\n The US and China recently announced a 90-day suspension of most of their recent tariffs on one another, raising hopes of alleviation in their trade dispute.<\/p>\n The cumulative US tariffs on Chinese imports will be lowered to 30% from 145%, while China\u2019s tariffs on US <\/span>imports will decrease to 10% from 125%.<\/span><\/p>\n However, several analysts have pointed out that tariffs still remain significantly higher compared to before Mr. Trump assumed<\/span>o<\/span>ffice, indicating that prices for numerous consumer products \u2014 spanning from cars and groceries to apparel \u2014 are still likely to rise.<\/span><\/p>\n Maynilad is aiming for a listing date of July 17 for its P45.8-billion IPO, according to its latest prospectus dated May 14. It is obligated to offer a minimum of 30% of its available capital stock to the public by January 2027 under its legislative franchise.<\/span><\/p>\n Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., believes that the PSE\u2019s capital-raising target for this year is feasible.<\/p>\n \u201cIt\u2019s attainable since Maynilad is legally mandated to list on the PSE,\u201d he articulated in a Viber message. \u201cThe stock rights offerings and follow-on offerings should be clear-cut.\u201d<\/p>\n \u201cNow presents a more favorable moment for IPOs as the US markets have stabilized with the de-escalation of the trade conflict,\u201d he continued.<\/p>\n Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., also mentioned improved stock market conditions both locally and in the US.<\/p>\n \u201cThis implies that more fundraising is achievable locally, as firms selling shares will likely do so at a higher price and optimize the capital they can raise,\u201d he expressed in a Viber message.<\/p>\n PDS INTEREST \u201cWe\u2019re in discussions with three government entities that still have shareholdings in PDS,\u201d he remarked, referring to Development Bank of the Philippines with 3%, Land Bank of the Philippines with over 2.5%, and Philippine Deposit Insurance Corp. with less than 1%.<\/p>\n \u201cThe process of acquiring these shares has been prolonged because these government banks are subject to certain regulations before they can liquidate their investments,\u201d the PSE leader explained. \u201cAt present, they are trying to obtain an exemption to engage in another public bidding prior to selling to PSE.\u201d<\/p>\n Last week, the PSE enhanced its beneficial ownership in PDS to 91.6% after executing accession agreements for the 17,500 PDS shares held by two members of the Bankers Association of the Philippines (BAP), equivalent to a 0.28% stake.<\/p>\n The PDS operates the Philippine Dealing and Exchange Corp. (PDEx), Philippine Depository and Trust Corp., and Philippine Securities Settlement Corp.<\/p>\n Following the acquisition of PDS, Mr. Monzon remarked that the PSE had consented to sell a portion of its ownership in the bond trading platform PDEx to BAP.<\/p>\n \u201cAfter extensive negotiations, we\u2019ve finally reached an agreement that PSE is willing to divest part of the PDEx ownership to BAP while ensuring that PSE retains control with a 51% stake,\u201d he stated.<\/p>\n \u201cSince banks conduct a significant portion of the trading and generate revenues for PDEx,\u201d he highlighted, \u201cit\u2019s essential to partner with them rather than view them as competitors.\u201d<\/p>\n \u201cAs the primary stakeholders in the fixed-income market, I believe they can be quite instrumental in developing new products that they could trade and offer to their clients,\u201d he added.<\/p>\n In December, the PSE finalized a P2.32-billion agreement to acquire a 61.92% stake in PDS, which involved purchasing 3.87 million shares at P600 each.<\/p>\n On Friday, the benchmark PSE index dipped by 0.02% or 1.33 points to 6,465.53, while the broader all-share index gained 0.02% or 0.93 point to 3,769.37.<\/p>\n
\n<\/b>In the meantime, Mr. Monzon stated that the PSE is aiming to increase its ownership in the Philippine Dealing System Holdings Corp. (PDS) to as much as 97% as the market operator awaits updates regarding three government banks that are divesting their shares.<\/p>\n