The Department of Information and Communications Technology (DICT) has called on the country’s leading technology firms, such as mobile wallet giant GCash and ride-hailing company Grab Philippines, to consider going public to breathe new life into the local bourse.

DICT Secretary Henry Aguda said encouraging companies to consider initial public offerings (IPOs) would be his main advocacy within the next two years as part of the government’s broader effort to “revive” the local stock market.

The Philippine Stock Exchange (PSE) is widely expected to miss its capital-raising target of ₱186 billion this year, due to the postponements of big-ticket listings amid internal and external headwinds.

Aguda, who served as president of UnionDigital Bank before assuming his role as DICT chief, noted that this is not the sentiment in other countries’ stock markets, partly because of tech firms fueling high capitalization.

“So, high time, we move to a situation where tech companies that, over time, showed that their financials are good, let's give the opportunity for the public to participate,” he said on the sidelines of Grab’s Asenso Center.

“I'm a big advocate that if the capital market of a country is mature, development will be faster,” he continued.

Aguda said Grab Philippines, the local unit of Singapore-based Grab, is one of these companies that are ripe for an IPO.

“You've been operating here for a long time, maybe you can become an IPO. We need action in the capital market. Maybe you can become a unicorn here in the Philippines, to be proud of the industry that you're driving,” the official told top officials of the company.

Sought for comment, Grab Philippines Country Head Ronald Roda noted that he is unsure whether the local unit can go public in the Philippines, especially since it is part of the broader Grab Holdings Inc., which is publicly traded on the Nasdaq Stock Market in New York City.

“Right now, we are a New York stock-listed company globally, so I think it’s an internal discussion on [whether] we can IPO in a specific country. So I don’t know the answer, we will have to check,” said Roda.

Roda noted that an IPO is used to raise funds, enhance a company’s profile, and help stimulate the economy. Even without one, he said Grab Philippines has been heavily investing in the country, with no plans of stopping anytime soon.

Aguda also cited Globe Fintech Innovations, Inc. (Mynt), the operator of GCash, as another company poised for a public listing.

“For them, they seem to be okay [for an IPO] but I leave it up to them,” he said.

GCash has been planning to list in the country with an evaluation of around $8 billion, but it is in no hurry to do so yet due to current market conditions.

Apart from Grab and Gcash, Aguda said he also wants companies involved in system integration to go for an IPO, providing the public with an opportunity to invest in the growing digital space.

“I'm thinking about those that have been around for a long time, but haven't raised capital to expand their business,” he added.

The secretary said part of this IPO push is so that the government can be more confident in tapping tech companies in information technology (IT) projects.

With the ongoing corruption scandals involving contractors in the public works sector, he noted that there would be greater assurance of a company’s capability to perform its contractual obligations if its information were readily available for scrutiny.

“If you're publicly listed, the governance is better. It's open to the public—who owns it, where the money comes from, where the spending goes—and more importantly, it has corporate social responsibility requirements. So, that's a big thing,” said Aguda.

Apart from the DICT, he said other government agencies—particularly the PSE and the Securities and Exchange Commission (SEC)—are open to such an effort to encourage tech companies to list.