SM Investments: Fostering confidence in the Philippine Stock Market

MANILA, Philippines — When SM Group founder Henry Sy wanted to expand his retail business, Jose Sio, SM Investments Corp. chairman emeritus who was the group's longtime CFO back then, said the quickest way to do it was to go public. 

True enough, SM's historic initial public offering in 2005 enabled the company to grow from just 19 malls and 23 department stores at the time to 95 malls in the Philippines and China and 4,470 retail stores today.

Sy, with a grand ambition to go large scale, heeded this advice. The rest, as they say, is history.

For the past two decades, SM has been a pillar of strength and stability in the Philippine stock market, embodying a commitment to growth, governance and inclusivity. 

Today, the company celebrates its 20th listing anniversary, which is a testament to the company's inspiring journey and evolution.

SM has become the guide for companies aspiring to grow big. It has become the barometer for companies that want to list on the Philippine Stock Exchange (PSE).

A legacy of value creation

Its story, after all, is indeed one for the books. 

Since going public on March 22, 2005, SM has demonstrated remarkable growth, expanding from a strong presence in retail and real estate to becoming a conglomerate with a vast portfolio across retail, banking and property development. 

SM listed with an adjusted price of P123.27 per share. Fast forward to March 21, 2025, the closing price of SM was P800 per share. This means that SM Investments’ shares have grown by over 549% in the last two decades. 

Over the course of 20 years, SM Investments’ assets grew by more than 900%, delivering a compounded annual growth of 12%. 

The company commemorated its 20th listing anniversary on March 24, 2025, at the PSE.

"When SM went public in March 2005, we were already a strong presence in retail and real estate, with 19 malls and a market capitalization of P127 billion. Today, we are proud to have 87 malls in the Philippines, 4,470 retail stores, and 2,441 bank branches, with assets exceeding P1.7 trillion and a market capitalization of P1 trillion," said SM president and Chief Executive Officer Frederic DyBuncio.

This remarkable growth, he said, is a testament to the group's belief in the potential of the Philippine economy and the vision of Sy.

"Over the past two decades, we’ve consistently created value—delivering steady returns to our investors while expanding opportunities for our people and communities. This legacy of growth and value creation continues to drive us forward," he said.

Sy's vision, indeed, has been instrumental in this success, as SM continuously adapts to the changing economic landscape. 

By reinvesting in the country and focusing on expansion, SM has played a key role in shaping modern retail and urban development, providing Filipinos with opportunities for business and employment.

But it wasn't just about going public and listing on the stock market. 

Commitment to governance

SM is committed to corporate governance and responsible growth.

Indeed, SM’s commitment to governance is the cornerstone of its success. With a predominantly independent board ensuring transparency and accountability, the company has built trust among investors. 

Beyond financial gains, SM prioritizes sustainability, investing in green infrastructure, innovative retail solutions and community support programs.

"At SM, we believe growth is about more than just numbers. It’s about responsibility and sustainability. We have always been committed to transparency, accountability, and a culture of integrity. Today, our boards are predominantly composed of independent directors, providing strategic guidance that ensures long-term success. Our growth has been built on strong governance and responsible practices," DyBuncio said.

Looking forward into the future, SM continues to invest in green infrastructure, embrace innovation and support communities across the Philippines. 

"At SM, we are focused on building a responsible, sustainable future for the generations to come," he said.

Strengthening the Philippine economy

Beyond profitability, SM is also a key driver of growth, boosting local economies where it operates, unlocking land values where its malls are present and providing jobs to tens of thousands of Filipinos. 

SM's banking subsidiaries, BDO and China Bank, have expanded financial inclusion, serving millions of Filipinos and driving economic activity.

The SM group’s core listed companies—SM, SM Prime Holdings, BDO and China Bank, which recently rejoined the PSEi after 14 years—signal investor confidence in the financial sector. Together, these four companies make up 30.2% of the PSEi’s market capitalization.

Future growth

Looking ahead, SM remains bullish on the Philippine economy. 

"As we look to the future, we remain focused on inclusivity and empowerment. Our brand promise, 'We’ve got it all for you,' has served us well for years. But as we move forward, we aim to build an SM FOR ALL—one that reaches and benefits every Filipino, ensuring that our growth is shared by all," DyBuncio said.

The group, he said, would continue to expand opportunities for Filipinos, providing greater access to modern retail, banking and integrated property developments that will help foster community, innovation and sustainability for the next generation.

As SM marks its 20th year as a publicly listed company, it remains a solid presence in the stock market, blazing the trail for others to follow.

For investors and the broader economy, SM’s journey is a reassuring signal that the Philippines is a market worth believing in.

Editor's Note: This content is not covered by Philstar.com's editorial guidelines.