By Ashley Erika O. Jose, Reporter

THE PHILIPPINES is unlikely to meet its target of six initial public offerings (IPOs) this year as issuers wait for improved market conditions and higher valuations, according to analysts.

“There’s always been an appetite. I think in terms of our listed companies, there’s still room for growth. There’s quite a number of interesting names which we hope to be able to take to the public. Unfortunately, admittedly, it will largely depend on how the markets perform, especially for the bigger IPOs,” Unicapital, Inc. Senior Vice-President for Investment Banking Pamela Louise Q. Victoriano said on the sidelines of the BusinessWorld Insights: Stock Market 2025 forum last week. 

The Philippine Stock Exchange, Inc. (PSE) expects six IPOs in 2025. Some of the most anticipated companies planning to go public this year include Maynilad Water Services, Inc., the water concessionaire for Metro Manila’s west zone; electronic wallet giant GCash; and Cebu-based fuel retailer Top Line Business Development Corp.

“If we see, let’s say, some market improvements in the second half of this year, then we would see a potential for the bigger IPOs to come up. If not, the smaller IPOs would be able to do better,” Ms. Victoriano said.

In 2024, the PSE missed its IPO target, recording only three listings out of the projected six. The companies that went public last year were Citicore Renewable Energy Corp., NexGen Energy Corp., and OceanaGold (Philippines), Inc. 

“We are hoping (to reach the target IPOs). We hope to see GCash, but it depends, of course, on market conditions,” April Lynn C. Lee-Tan, first vice-president and corporate strategy and chief investor relations officer of COL Financial Group, Inc., said during the forum. 

Ms. Tan said many companies are interested in listing, but current market conditions and low valuations are unfavorable.

“The better the valuations, the more companies you will see tapping the market,” Ms. Tan said.

Sought for comment, Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said achieving the six-IPO target would be challenging.

“Given current circumstances, the target of six IPOs is likely to be very difficult to achieve. We need a significant improvement in equity market conditions to drive IPOs. At this time, our estimate is only three IPOs at best,” Mr. Colet said in a Viber message.

Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said the PSE faces multiple hurdles in meeting its capital-raising and IPO targets. 

“PSE’s success in meeting its IPO and capital-raising goals remains uncertain but achievable with strategic planning and favorable conditions. Further monitoring of economic indicators and market policies will provide clearer insights,” Mr. Arce said in a Viber message.

Clear policies promoting IPOs and private placements, as well as market diversification, are key to achieving the PSE’s target listings this year, he added.

For 2025, the Philippine stock market is expected to recover, driven by easing inflation and potential rate cuts by the central bank. 

“It is the first time in two years that we’re bullish on this market,” First Metro Securities Brokerage Corp. First Vice-President and Equity Research Division Head Reuben Mark Angeles said during the BusinessWorld Insights: Stock Market 2025 forum. 

Mr. Angeles said the PSE index (PSEi) is projected to reach 7,600 by year-end.

The PSEi closed 2024 at 6,528.79, up 1.2% from its 6,450.04 finish in 2023. This marked the first time the benchmark index ended higher since 2019.