PSE expects 2 more IPOs this year

MANILA, Philippines - The Philippine Stock Exchange (PSE) expects at least two initial public offerings (IPOs) for the rest of the year with the bigger of the two possibly happening “in the coming weeks.”

PSE chief operating officer Roel Refran declined to identify the two companies but so far, those that are seeking approvals to do an IPO are oil giant Pilipinas Shell Petroleum Corp. and technology company AudioWav Media Inc.

“We will have a deal hopefully in the next couple of weeks. Expect one big and hopefully another one,” Refran said.

Shell is still seeking regulatory approval for a planned P29.7 billion IPO. The company will offer 330 million shares including an over allotment of up to 30 million for up to P90 per share.

In its registration statement filed with the Securities and Exchange Commission (SEC), Shell is planning to do its IPO on November 10 but company insiders said the IPO may happen earlier or before its country chair for 13 years, Edgar Chua, retires in October.

However, in a separate interview, BPI Capital chief operating officer Reginald Cariaso simply said they are working to get the IPO done but declined to comment on whether there would be a change in schedule. BPI and JP Morgan are the underwriters for Shell’s IPO.

“It’s been filed and we’re working to get it done,” Cariaso said.

Commenting on the prevailing market conditions, he said: “I think market is still conducive for deals  both on the equity and debt capital markets.”

Audiowav, meanwhile, is also planning to do an IPO to raise up to P2.66 billion from the sale of 900 million common shares at a price range of P1.77 to P2.96 per share.

It is targeting to list in the PSE’s Small, Medium and Emerging Board on November 21, according to its regulatory filing.

In all, Refran said the PSE is still keeping its target to raise P200 billion from various fund raising activities this year including IPOs, follow-on offerings, and private placements.

“We’re still sticking to the target. And when Sept. 21 comes and goes, hopefully expectations of monetary policy will be aligned with how the market will perform so we will know,” he said.