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Leaving the PSE: Why companies think being public isn't worth it anymore
Business
The Stock Market
Leaving the PSE: Why companies think being public isn't worth it anymore
Leaving the PSE: Why companies think being public isn't worth it anymore
Published Mar 31, 2026 03:47 pm
The Philippine Stock Exchange trading floor. A “Great Exit” of corporate giants has wiped over ₱580 billion in market value from the local bourse since 2023. With major firms like MPIC and Eagle Cement delisting due to thin liquidity and persistent undervaluation, the exchange is losing nearly ₱2 in value for every ₱1 brought in by new IPOs, raising urgent questions about the future of the country's public capital markets.
The Philippine Stock Exchange (PSE) is getting smaller. In just three years, a “Great Exit” of major companies, from Metro Pacific Investments Corp. (MPIC) to Eagle Cement Corp., has pulled more than ₱580 billion out of the public market.
This exodus is moving faster than the exchange can replace it; for every peso brought in by new initial public offerings (IPOs) since 2023, nearly ₱2 have vanished as companies decide that being “public” is no longer worth the cost.
The numbers for the PSE are headed in the wrong direction. Between 2023 and early 2026, eight major firms opted to leave the local bourse, citing persistent undervaluation and thin liquidity.
The trend began in February 2023 with San Miguel Corp.’s Eagle Cement, which took ₱110 billion in market value with it. It was followed by the SM Group’s 2Go Group Inc. in July 2023 at ₱33 billion, Manuel V. Pangilinan’s MPIC in October 2023 at ₱151 billion, and Holcim Philippines Inc. in November 2023 at ₱34.4 billion.
The momentum continued into 2024 as the SM Group’s Premium Leisure Corp. delisted in July, removing ₱34.4 billion from the exchange, alongside SFA Semicon Philippines Corp.’s ₱7.9 billion exit. By 2025, Keppel Philippines Holdings Inc., valued at ₱10.8 billion, and mass-housing developer 8990 Holdings Inc., valued at ₱56.2 billion, also finalized their departures.
The shrinkage is set to accelerate even further this year. Asian Terminals Inc., valued at ₱68.6 billion, is scheduled to delist by April 3, 2026. Meanwhile, Gokongwei’s Robinsons Retail Holdings Inc. recently announced plans to exit, with its tender offer price implying a market capitalization of approximately ₱76 billion.
Structural critique
Market analysts suggested the exodus is a structural critique of the local capital market. Nicky Franco, vice president and head of research at Abacus Securities Corp., noted that delisting is an extreme form of a share buyback, which companies execute when they perceive their share price is too low.
With the broad market trading near historical valuation floors, the incentive to go private has intensified. This internal rot is also compounded by the PSE’s performance compared to its neighbors. Since the world began shaking off Covid-19 in 2021, the local market has largely been a laggard in the ASEAN region.
While indices in Indonesia and Singapore hit multi-year highs between 2022 and 2025, the PSEi spent much of the post-pandemic era trapped in a horizontal crawl.
Jonathan Ravelas, Reyes Tacando & Co. senior adviser, said more companies are also delisting because being public in the Philippines has become costly and often unrewarding.
He argued that liquidity is thin, valuations don’t always reflect fundamentals, and compliance takes a significant toll on time and money.
“For the broader market, it’s a warning sign: if good companies feel the PSE no longer supports long‑term growth, regulators and the exchange need to make listing more attractive,” he noted.
Juan Paolo Colet, Chinabank Capital Corp. managing director, added that the local public equity market has failed to provide these companies with enough reason to stay listed.
He pointed out that companies can now rely on private markets and alternative sources for equity funding at better valuations, causing the public market to lose its appeal as a venue for capital raising.
Impact on retail investors
For small-scale investors, delistings represent the best chance to exit stocks that suffer from persistent undervaluation. However, Ravelas emphasized that the key issue for minority shareholders remains fair value, as the exit price must reflect the company’s true potential.
Many firms base tender offers on depressed market prices, leaving shareholders feeling short-changed. These investors often face a grim choice: accept the offer or be locked into unlisted shares that are difficult to sell and subject to higher taxes.
From a corporate perspective, Franco noted that going private allows firms to save on listing fees and removes the pressure from outside parties regarding financial performance.
Ravelas added that going private gives firms the flexibility to think long-term, restructure, and invest without quarterly market pressure, while keeping control within the group.
While delistings are set to erase over half a trillion pesos, new listings remain sparse due to poor sentiment and low liquidity.
From 2023 to early 2026, the PSE added about ₱306.9 billion in new equity value through eight IPOs. In 2023, new listings included Upson International (₱3.29 billion), Alternergy Holdings (₱3.93 billion), and Repower Energy Development Corp. (₱650 million).
In 2024, OceanGold Philippines listed ₱2.28 billion worth of shares, followed by Citicore Renewable Energy Corp. at ₱8.93 billion and NexGen Energy Corp. at ₱1.49 billion.
For 2025, Top Line Business Development Corp. listed ₱4.22 billion, while Maynilad Water Services marked the biggest entry in three years at ₱10.46 billion.
The PSE was also able to list ₱215 billion in fresh capital through preferred shares, follow-on offerings, and private placements, but the gap left by departing giants remains vast.