Capital raised from stock market up 8.4% to P85 billion in 10 months

MANILA, Philippines — The Philippine Stock Exchange (PSE), the operator of the local bourse, has noted an increase in capital raising activities by corporates this year despite the negative business environment brought about by COVID-19.

In a press briefing following the PSE’s annual stockholders’ meeting, PSE president Ramon Monzon said that capital raised from the stock market from January to October amounted to P85.2 billion, up 8.4 percent from last year’s P74.58 billion.

“We have a very robust capital raising activity despite the pandemic,” Monzon said.

Capital raising activities in the stock market this year include the P1.6 billion initial public offering of MerryMart last June, the P12.3 billion IPO of Ayala Land Inc.’s AREIT in August and the P29 billion IPO of Converge ICT last month.

Other capital raising activities in the pipeline include the P756 million follow-on offering of Dennis Uy’s PH Resorts Group Holdings Inc.

Monzon also expects two to three more REIT companies to brave the stock market. “We have two to three companies that have indicated their interest to launch their REITs,” Monzon said.

The REIT Act allows REIT companies to list and trade their shares of stock in the stock market as an alternative means to raise funds for property development and expansion initiatives.

Companies that own and operate income-generating real estate assets are considered REIT companies. These companies include offices, apartment buildings, hotels, warehouses, shopping centers and highways.

Monzon also welcomed yesterday four new members of the board of directors elected at the company’s annual stockholders’ meeting yesterday.

Elected to the PSE board as independent directors were former chief justice Teresita de Castro and prominent investment banker and former ING Bank Manila country head Consuelo Garcia.

Also elected were San Miguel Corp. CFO and treasurer Ferdinand Constantino as sectoral representative for non-broker director-investors and Securities Specialists Inc. nominee Diosdado Arroyo as broker-director.

Re-elected to the PSE board as independent directors were Jose Pardo, Roberto Lim and Vicente Panlilio. Anabelle Chua, Rolando Jose Macasaet and Edgardo Lacson were re-elected as non-broker directors and sectoral representatives for issuers, investors, and other market participants respectively. The broker-directors given fresh mandates were Eddie Gobing, Eusebio Tanco, Wilson Sy, and Ma. Vivian Yuchengco. Monzon was also re-elected as president and CEO.

Starting this year, a third of PSE’s 15-person board of directors will be comprised of independent directors.

The amendment in board composition is in compliance with the Securities and Exchange Commission Memorandum Circular 20, Series of 2020 which mandates that independent directors shall constitute at least one-third of the members of the board of directors of exchanges and other organized markets.