7 more listings in PSE seen in 2013

MANILA, Philippines – With the local bourse continuing to post new highs, the Philippine Stock Exchange (PSE) expects at least 7 more listings for 2013. 

In a briefing Saturday, May 18, PSE President Hans Sicat said this will make it possible for the Exchange to exceed the record-high P219.07 billion capital funds raised in 2012.

Sicat, who was elected for a third term as PSE President, said the expected listings will consist of initial public offerings (IPO), follow-on offerings, stock rights and private placements.

At the start of 2013, Sicat said around 7 to 10 listings for the year but with the robust performance of the local bourse, he said more were encouraged to take part of the gains. 

“There’s quite a robust activity level, which includes IPOs. I think you’ll be delighted to see what is coming down the pipeline in a few months,” Sicat said. 

New products

Sicat said that on his third year as President of the Exchange, his focus will be to add new products sold at the PSE. He said that one of the products that are forthcoming are exchange-traded funds (ETFs). 

He said the introduction of ETFs has been delayed but are still going to push through either at the end of the first half or the beginning of the second half of 2013. 

An ETF is an investment fund that is similar to a mutual fund. It tracks the main exchange index or other market indices and replicate their performance.

It is composed of underlying assets, but unlike a mutual fund, it is traded on a stock exchange real-time during trading hours.

“We’re all quite excited for the opportunities in front of us for the rest of this year and as I say this, inspired by the discussion at the Annual Stockholder’s meeting, the big challenge for the PSE is to actually get us to a stage where we get more products traded at the Exchange and continuing the increase in the float and the participation of the investors as well,” Sicat said. 

More shares 

Due to the expected increase in activities at the PSE, Sicat said the Exchange is looking to raise its authorized capital stock to 120 million in 2013 from the current 97 million. 

“It will support our medium term strategic plan which calls for quite a bit more investments, among many things. At some point we might use that equity to fund our activities,” Sicat said. 

The increase in its authorized capital stock also gives the PSE room to adjust since it is now in talks with Philippine Dealing and Exchange (PDEx). 

Sicat said the merger talks are still ongoing and the Exchange is hoping that the talks be completed “sooner than later”. He said the PSE hopes that the talks will be completed in 2013 than in 2015. 

The government has been urging the securities and bond exchanges to merge. Finance Secretary Cesar V. Purisima even said he would like to the “ninong (godfather) in the matchmaking.”

New home

The PSE is also in the process of selling its properties, namely its offices and trading floors in Ortigas Center and Ayala to purchase 4 floors in the Philippine Stock Exchange at OneBonifacio at the Bonifacio Global City (BGC) in Taguig City. 

The PSE owns at least three floors of office space and the trading floor at Tektite Tower and owns offices adjacent to the Ayala trading floor at Ayala Tower 1. 

Sicat said the PSE intends to raise P805.6 million from its properties to purchase the 6,400 square meter office space it is acquiring in BGC. The building, being built by Ayala Land Inc. (ALI), is a 26-floor development where floors 6 to 10 will be occupied by the PSE. 

He said that the ALI will deliver the units by 2015, giving the PSE room to move in by early 2016. Sicat said there are already brokers that have expressed interest in transferring their offices to BGC but, Sicat said, transferring is only optional. – Rappler.com