Unicapital Group (Unicapital), a leading independent financial services provider and investment firm, believes initial public offerings in the Philippines are set to make a big comeback this year despite doubts and challenges facing the capital market.

At a recent stock market forum, Unicapital Group Senior Vice President for Investment Banking Pamela Victoriano said that, while investors remain cautious, they are eagerly looking for opportunities to diversify their portfolios and tap into high-growth opportunities.

She noted that this is true even though the business climate around the world has been marked by uncertainties and fears among companies that want to raise capital, gain market visibility, and provide liquidity to early investors and employees.

Even in a challenging 2024 market, key players such as Citicore Renewable Energy Corporation, OceanaGold (Philippines), Inc., and NexGen Energy Corporation successfully debuted on the Philippine Stock Exchange (PSE) last year.

With interest rates expected to gradually ease and corporate earnings projected to rise by 10 percent, Unicapital sees a wave of IPOs, with up to four major listings expected this year.

“The Philippine stock market is currently undervalued compared to regional peers, creating opportunities for investors. With favorable market conditions, we anticipate more companies tapping the public markets in 2025,” Victoriano said.

The Philippines’ reputation as one of Southeast Asia’s fastest-growing economies continues to attract both local and foreign investors.

With a more stable macroeconomic environment, Unicapital expects IPO activity to accelerate, further strengthening the country’s financial landscape.

Recent regulatory reforms, including the Philippines’ removal from the Financial Action Task Force (FATF) gray list and proposed reductions in Stock Transaction Taxes and Documentary Stamp Tax (DST), are also set to enhance market accessibility and increase overseas investor participation.

Market innovations are also reshaping the investment landscape. The PSE’s introduction of new financial instruments, including Global Philippine Depositary Receipts and index futures, are expected to boost market liquidity and attract new participants.

In its 2025 outlook, Unicapital’s research team projects that the Philippine Stock Exchange Index (PSEi) could climb to 7,200–8,100 points by year-end 2025, fueled by strong foreign investment inflows and continued economic expansion.

“We are cautiously optimistic about the future. We believe there's been a lot of headwinds in terms of developing the capital markets and there's still a lot more space for growth, which is good for investors and means a lot more work for all of us moving forward,” Victoriano said.

For companies looking to go public, she said timing, financial readiness, and investor engagement are critical, noting that a successful IPO is not just about listing, it’s about long-term market positioning.

She outlined that strong corporate governance, transparent financials, and a compelling business narrative are essential to attracting both institutional and retail investors.

Companies that engage investors early and align their strategy with market trends will be in the best position to maximize their IPO performance.