IPOs, other share issuances raise P89.95B in fresh capital

Fresh capital raised from initial public offerings (IPOs) and other share issuances hit a record high of P89.95 billion this year, up 57 percent from the previous annual record level of P57.23 billion in 2006, according to data culled by the Philippine Stock Exchange.

PSE records show that nine firms went public this year compared with only four a year ago while seven others did follow-on offerings versus last year’s six. 

One company listed by way of introduction while nine companies issued shares through a stock rights offering while another nine raised capital through private placements.             

“The bullish sentiment of investors has enticed more companies to sell their shares to the public. The market’s vigor and resilience gave these companies added confidence to tap the capital market for funds. They probably would have entertained second thoughts, if our market showed signs of weakness,” said PSE president Francis Lim.                

Equity raised from IPOs declined by 2.1 percent to P18.62 billion from P19.02 billion last year.  

Bulk of the total or P10.09 billion came from Aboitiz Power Corp., the listed holding firm for all power generation and distribution assets of the Aboitiz family, followed by National Reinsurance Corp. which raised P2.82 billion in new capital.            

Other companies that issued shares by way of IPO include lotto Pacific Online Systems Corp. , the exclusive online lottery system supplier in Visayas and Mindanao;  Phoenix Petroleum Phils., GMA Network Inc., Anchor Land, I-Remit Inc., Splash Corp., and Oriental Peninsula Resources Group. 

eTelecare Global Solutions was the lone firm that listed by way of introduction or listed its shares on the exchange without undertaking an IPO.      

Capital raised from private placements likewise fell from over P6 billion to P5.55 billion.     

A dramatic surge in follow-on and stock rights offerings, however,  more than made up for the slack in IPOs and private placements. Capital raised from additional share issuances surged 64.9 percent to P49.03 billion from only P29.74 billion in 2007 while equity raised from stock rights offerings grew seven-fold to P16.64 billion compared with only P2.28 billion last year.

Among the companies that raised capital through follow-on offerings, Vista Land accounted for bulk of sales proceeds amounting to P14.52 billion, followed by Alliance Global Group Inc., Filinvest Land Inc. (P5.92 billion), Rizal Commercial Banking Corp. (P5.67 billion in two follow-on offerings), Philippine National Bank (P5.25 billion), Union Bank of the Philippines (UBP), P5.04 billion in two follow-on offerings) and TKC Steel (P2.27 billion).  Upscale property developer Megaworld Properties and Holdings Inc., accounted for  majority of the  proceeds from  stock rights offerings at P10.79 billion followed by Alliance Global (P3.31 billion),  Union Bank, Geograce Resources Philippines Inc. (P560.47 million), EEI Corp. (P540 million), and ISM Communications Corp. (P300 million). 

Companies that raised funds from the private placements included Philippine Bank of Communication (P3 billion), Atlas Consolidated Mining & Development Corp. (P871 million), TKC Steel Corp. (P680 million) and ATR Kim-eng Financial Corp. (P104 million).