Philippine equity capital raising might reach $4 bln next year -bourse

MANILA Dec 11 Philippine companies could improve equity capital raising on the local stock exchange to 200 billion pesos ($ four.two billion), the head of the country’s bourse stated, adding that eight to 10 firms were probably to pursue a listing.

Market place volatility has taken its toll on listings this year with home firm D.M. Wenceslao and Associates Inc delaying a $ 150-200 million IPO and homebuilder and contractor Datem Inc postponing an offering of up to $ 75 million.

Equity fundraising via the bourse, via either listings or secondary share offerings, has so far come to 184.6 billion pesos, exchange information showed.

A figure above 200 billion pesos subsequent year would mark the highest level considering that 2012 when a record 219 billion pesos was raised.

“Possibly about 200 billion pesos is a great target,” Philippine Stock Exchange CEO Hans Sicat told Reuters late on Thursday.

Investors are expected to be cautious till presidential and regional elections in Could are over and clear policies are revealed by the new administration.

Right after a sturdy six-year run, the Philippines benchmark index has fallen 6.7 % so far this year as foreign investors exit emerging markets ahead of an expected U.S. rate hike.

But the decline has not been as steep as some other Southeast Asian nations with Thailand’s principal index falling 13.7 percent and Indonesia’s benchmark index tumbling 15.two %. ($ 1 = 47.2250 Philippine pesos) (Reporting by Neil Jerome Morales Editing by Edwina Gibbs)