Leap of faith: PSE hopeful of more IPOs

MANILA, Philippines — The Philippine Stock Exchange (PSE) is hoping that more companies from its Listing Engagement and Assistance Program (LEAP) will brave the market  and pursue their initial public offering (IPO) dreams despite current market conditions.

PSE president and CEO Ramon Monzon said that following the listing of Top Line Business Development Corp. Tuesday, four PSE LEAP clients have now successfully gone public.

“We hope that more companies in the program will soon follow suit,” he said.

The PSE LEAP is a handholding program of the exchange that offers a one-stop shop service to potential listing applicants.

It provides guidance to clients via one-on-one advisory sessions, access to online pre-listing assessment tools and assistance in connecting potential clients to seasoned IPO advisors.

Monzon said that Top Line representatives joined the PSE’s Road to IPO Forum in September 2022, a platform launched in 2021 to promote and disseminate the advantages of raising capital through the stock market to interested companies and update them on the PSE’s newly approved relaxed listing rules.

“Soon after, Top Line signed for PSE’s listing engagement and assistance program or PSE LEAP and has since actively participated in various LEAP activities,” he said.

Despite current market conditions, Monzon hopes that more companies will continue to pursue their IPO plans given the benefits of being a listed company.

“Instead of knocking on the doors of banks for loans, it will now be the banks who will knock on your doors to offer you loans. You will now be positively received in the bond market and of course, you can now easily raise capital at the exchange with a follow-on offering or a stock rights offering,” he said.

Monzon said that being listed also gives a company a seal of good housekeeping in terms of good governance, regulatory compliance and implicit transparency of management.

“Since listing dates are milestones, it is understandable that there are investors who put a lot of importance on their stock’s performance on its stock market debut. But as I said many times, an IPO is not the be-all and end-all of a company’s existence. It is just the beginning,” Monzon said.

For this year, the PSE is looking at a total of six IPOs, double from last year’s three.

The IPO of Top Line, which was supposed to be the fourth and last IPO for 2024, was the first this year.

“Global markets tumbled yesterday (Monday) as a result of Trump’s  liberation day tariffs.  or as some call it, liquidation day tariffs. Less than stellar market conditions and every imaginable headwinds are among the realities that publicly listed firms have to contend with,” Monzon said.