MANILA, Philippines — The Philippine Stock Exchange (PSE) is holding firm on its P170-billion capital-raising target this year, brushing aside near-term uncertainties stemming from the Middle East conflict.
PSE president and CEO Ramon Monzon said the bourse remains on track to meet its fundraising goal, even as global risks continue to cloud market sentiment.
“We’re still okay,” Monzon said when asked if the exchange would revise its targets amid the ongoing conflict.
Pressed further on whether earlier projections would still hold, he added: “I’m still firm with my P170 billion capital raising.”
Still, Monzon acknowledged that timing remains a critical factor, particularly for large-scale listings.
Middle East woes
While the pipeline remains intact, he indicated that so-called “mega initial public offerings (IPOs)” may not materialize immediately under current market conditions.
“Not right now. I mean, of course, I hope this conflict will stop in the next two months or something,” he said.
Instead, the exchange expects fundraising activity to be supported by alternative instruments, particularly real estate investment trusts (REITs), as well as re-IPOs and follow-on offerings.
“There’s a new rate rule, so we expect a big rate listing. Maybe there’s a lot of re-IPOs, follow-on offerings,” Monzon said.
He also clarified that not all large transactions count toward the capital-raising tally. For instance, the planned sale of a stake in Philippine National Bank (PNB) does not qualify.
“No, that’s just an offering. There’s no capital raising. That’s not included,” he said.
Monzon noted that while the stake has a market value of about P56 billion, only around P8.5 billion represents the offer size.
Fintech board
Beyond fundraising, the PSE is also exploring new avenues to deepen the market, including a potential fintech-focused board modeled after technology-heavy exchanges abroad. However, Monzon admitted that structural challenges remain.
“We’re studying a board for fintech. But, to be able to launch a board like that, there needs to be market makers,” he said.
The PSE chief added that the exchange is still in talks with brokers on this, but has yet to secure firm commitments.
At the same time, Monzon expressed caution over local fintech firms pursuing foreign-first or dual listings, warning of potential risks in competing with larger global players.
“What they are doing is difficult. I do not know what will happen to them after this. They will be orphans,” he said.
