Capital raising activities at the Philippine Stock Exchange Inc. (PSE) this year will still be lower than in 2023, but the stock market is optimistic about a rebound in 2025.

“This year, we will hit around P90 to P100 billion,” PSE President and CEO Ramon Monzon told the Manila Times last week.

“I think next year, at least… P150 (billion).”

At a forum recently concluded by the Manila Times, Monzon said P76.84 billion had been raised so far since October through three initial public offerings (IPOs), a rights offering, six follow-on offerings (FOOs) and seven private placements. .

At least another 11.7 billion lei could follow for the rest of this year, including an IPO, three OIFs and a rights offering.

This would bring the total to at least £88.54bn by 2024, down from £140.95bn in 2023.

Cebu-based Top Line Business Development Corp. received regulatory approval for a P2.87 billion IPO next month, which will be its fourth such listing this year after OceanaGold (Philippines) Inc., Citicore Renewable Energy Corp. and NexGen Energy Corp.

Meanwhile, three FOOs will come from Arthaland Corp. (3 billion lei), DITO CME Holdings Corp. (1.97 billion lei) and Steniel Manufacturing Corp. (315 million lei). Arthaland and DITO are set to list their follow-up deals next month, while details of Steniel’s FOO have yet to be released.

Phinma Corp. finally plans to raise one billion pounds through a rights offering to finance its business unit projects and investments in new ventures.

Monzon said some of the IPOs next year could include GCash, which recently saw a valuation boost after Mitsubishi Corp. of Japan also increased its stake in Maynilad Water Services Inc., which is mandated under its concession agreement to go public on or before 2027.

“We know some big names – Gcash is later in the year, but you have Maynilad,” he said. “A few other big companies (have) talked to us … sometimes it’s not the number, it’s the capital raising that I’m looking at.”

Philstocks Financial Inc. research manager Japhet Tantiangco told the Times that “assuming we can get back on track, I think the 150 billion target (raising capital) is possible.”

“Ultimately, apart from the need for funds, issuers will check whether there is a strong appetite from investors,” he added.

Investor confidence will need to be boosted and “we should see continued positive developments in the overall economy,” Tantiangco continued.

Meanwhile, Unicapital Group head of research Wendy Estacio-Cruz said “we believe the Philippine Stock Exchange’s P150B capital raising target is achievable if inflation and interest rates continue to decline next year.”

“This should encourage companies to finance expansions through equity markets, which tend to perform better in such environments,” she added.

“We expect at least 2-3 IPOs next year, potentially up to 6, excluding SROs and FOOs,” she continued, noting that “a key risk to a policy rate cut is a potential escalation of geopolitical tensions.”

Meanwhile, Luna Securities president Francis Diaz said “more products on the shelves can only be a good thing.”

“There are many interesting companies that could take advantage of the capital markets and in turn be publicly invested,” he added.

Market conditions will be a key factor, Diaz continued, noting that “markets are in a better position now than they were six, 12 months ago, and with higher interest comes the potential for higher valuations good”.

The listing process, however, is “somewhat daunting,” and Diaz said the exchange may consider some changes.

“IPO comes with a lot of responsibilities, pre- and post-IPO, and there can be wisdom in auditing the current process and requirements. I think technology can be a big help here,” he said.

Last week, Monzon said the stock market was still among the most attractive in the region, despite a drop in capital-raising activities.

“As of October 18, the dividend yield index, composed of the top 20 dividend-paying companies, is up 29.6% year-to-date, while the mid-cap index, which includes the top 20 mid-sized companies, is also up . up 29% year to date,” he said.

Meanwhile, in September, average daily turnover rose to P6.23 billion, up 2.2 percent from the 2023 average of P6.09 billion.

“At the same time, the market also moved to a net foreign buying position of 4.74 billion pesos, which is a reversal of net foreign sales of 53.65 billion from the end of 2023.”

However, the PSE continues to lag behind other Asian exchanges in terms of the number of listed companies and turnover, which Monzon said are indicators of low liquidity.

Despite the fact that they have 1.9 million individuals registered as stock market investors, compared to 1.1 million people with time deposit accounts, the turnover in the first semester amounted to only 1.384 trillion lei, compared to term deposit accounts amounting to 5.628 trillion lei.

He said lower bank interest rates could drive funds to the stock market and added that new products could attract more investors.

The PSEi, which earlier this month hit a more than four-year high of 7,554.68, fell to a low of 7,283.79 on Thursday but recovered ground to close the week at 7,314.24.