PSE's ₱186-billion target at risk as IPOs get delayed
Published Aug 28, 2025 03:53 pm
The Philippine Stock Exchange (PSE) is expected to face difficulty in achieving its capital-raising target of ₱186 billion this year, as big-ticket initial public offerings are being postponed.
This comes after Hann Holdings announced the deferment of its ₱13 billion initial public offering due to poor market conditions, while SM Prime Holdings Inc. signaled that its planned $1 billion real estate investment trust IPO will be postponed beyond 2026, as it does not require the funds.
“We believe Hann Holdings made the right call in deferring its IPO, given the still lackluster market sentiment. After all, timing is just as important as fundamentals in market listings,” said Unicapital Securities Research Analyst Jeri R. Alfonso.
She noted that, “With conditions still looking weak, holding off is a more prudent move than pushing through when investors may not be ready to support a new IPO. By waiting for the proper timing, Hann Holdings avoids the risk of selling shares too cheaply and better safeguards its shareholder value.”
“Not only is the initially targeted six IPOs for the PSE this year unlikely to be achieved, but weak investor sentiment appears to have started to creep into potential IPOs for next year.
“SMPH management was quoted as saying that the IPO for SM REIT may not just be deferred beyond 2025, but even beyond 2026, and the company is looking at green financing in the meantime,” said Abacus Securities Corporation.
Meanwhile, GCash’s parent company, Mynt’s IPO, which was initially expected this year, is not getting firmed up as it has yet to file its application with the Securities and Exchange Commission, while Globe officials point out that they are not in a hurry to go public.
“The latest comments from management for Mynt's IPO plans have softened in recent weeks, and even if Mynt does push through for next year, this may push other potential listings on account of the market's absorption capacity,” said Abacus.
Alfonso said, “One fewer IPO also makes it tougher for the Philippine Stock Exchange (PSE) to hit its ₱186 billion capital-raising target this year. As of the first half of 2025, only ₱63 billion—or 34 percent of the goal—has been raised, coming from one IPO, two follow-on offerings, and around six private placements.”
Abacus pointed out that, “The deferred list of IPOs has outnumbered the completed ones probably in the past two to three years. While there has been success over the one and only IPO (Topline) so far for 2025, there hasn't been enough optimism to look past the PSEi's tepid performance, especially compared to its regional peers.”
However, Abacus said “we are still expecting at the very least one more IPO set for this coming October with Maynilad's listing which was also delayed by a few months. It will likely garner more pressure to price lower with the deferral and will likely be dependent on its yield payout, which would be attractive enough for the market.”
For her part, Alfonso said that, “In our view, with one less listing in the pipeline, appetite may be stronger for Maynilad should it proceed with its planned October debut.”
Just last month, PSE President Ramon S. Monzon said the bourse’s capital-raising pipeline was getting more robust with the target for 2025 upgraded again, this time to ₱186.3 billion as more firms apply to list stocks for the second semester.
“I'm glad to report, I think we'll be hitting at least ₱180 billion in capital rating this year, and hopefully more, if there are more applications we receive in the third and fourth quarter,” said PSE President Ramon S. Monzon in a press briefing after the bourse’s annual stockholders’ meeting on Saturday.
At the start of the year, he said the PSE’s target was ₱120 billion, and this target was increased to ₱170 billion last May, even without counting the much-anticipated giant initial public offering of GCash or Mynt, since the firm has yet to file its application.
“So far, based on applications we have received, as of July, our capital raising is about ₱185 billion already. That's based on the fact that for the first half of the year, our capital raising was approximately ₱62.6 billion. That's one IPO, two FOOs (follow-on offerings) and about six private placements.
“For the second half, based on the applications we've received to date, we expect an additional capital raising activity of about ₱123.7 billion. This is composed of two IPOs, two follow-on offerings, one SRO (stock rights offering), and one listing of convertible warrants,” Monzon said.
He said “In the pipeline, the PSE, so far, is expecting an additional ₱122.8 1 billion from the IPO of Maynilad Water Services, stock rights offering of ACEN Corporation, and follow-on offerings of Ayala Corporation, Steniel Manufacturing Corporation, and Alliance Global Group Inc.”
As for the fixed income market, Monzon said a total face amount of ₱73.2 billion in new bond listings was registered on the Philippine Dealing & Exchange Corporation, which is now controlled by the PSE.