More ‘bite-sized’ IPOs set

MANILA, Philippines - With a stronger Philippine economy expected this year, the market should anticipate the influx of more small and medium-sized enterprises in the local bourse.

In an interview, First Metro Investment Corp. (FMIC) president Roberto Juanchito Dispo said it would not be a surprise if the Philippine Stock Exchange will see a number of “bite-sized” initial public offerings (IPO) from small and medium enterprises in the coming months.

 “I think bite-sized IPOs in the Philippine context is more doable, easily absorbable by the market, easy to turn around and market, and is also consistent with our advocacy to introduce new capital market names,” Dispo said.

For its part, Dispo said FMIC is expecting to handle planned IPOs of two emerging companies in the upcoming months.

He said these firms are likely to push through with their planned IPO within the first half of the year and are expected to raise between P1 billion to P2 billion each.

“One is in the food/consumer business while the other is in the lending/remittance/pawnshop industry,” Dispo said.

“I think this year we’re shifting our strategy, we’re identifying SMEs that are very profitable that can easily be listed in the exchange rather than go for mature, big companies,” he added.

The PSE earlier said it wants more SMEs to join the local bourse this year following the successful listing of two companies on the SME board last year.

Property company DoubleDragon Properties Corp., which listed on April 7, raised P1.16 billion from its IPO while technology firm Xurpas Inc., which listed on Dec. 2, raised P1.37 billion from its offering.

Shares of both firms skyrocketed and hit the ceiling price in their respective market debut.

Aside from the two SMEs planning to conduct their maiden offering, FMIC is currently working as underwriter together with BDO Capital & Investment Corp. of the IPO-bound affordable housing developer Pro-Friends Group Inc.

Pro-Friends is looking to be the first company to list in the local bourse this year with a planned P7.7-billion IPO.

“Preparation is still continuing. We ran out of time last December so we’re doing a refresh, financial review and audit, and securing fresh regulatory approvals,” Dispo said.

Dispo said Pro-Friends’ IPO would likely happen within the first quarter of the year.