More firms to list at PSE

MANILA, Philippines — The country’s capital market is seeing a boom in initial public offerings (IPO) this year despite the pandemic as companies beef up their war chest in preparation for the economy’s recovery.

A number of companies are preparing to debut on the Philippine Stock Exchange (PSE) this year on top of the increasingly vibrant real estate investment trust (REIT) market.

HausTalk Inc., which sells “affordable housing,” is looking to raise P750 million from a primary offer of 500 million common shares at a price of P1.50 per share. It will be listed on the SME board of the PSE.

Another real estate company, Olivares family-led real estate developer Ovialand Inc., is also planning to do an IPO to expand its housing portfolio throughout Luzon, Visayas and Mindanao from now until 2030.

No definite timetable has been given for its IPO, but the company has already tapped China Bank Capital Corp. as its financial advisor.

AllDay Marts Inc. of tycoon Manuel Villar plans to raise up to P6 billion from a primary offer of up to 6.85 billion common shares, with an over-allotment option of up to 685.7 million common shares, priced at up to P0.80 per share. It is targeted to list on Nov. 3.

Villar’s brother‘s Medilines Distributors Inc., a leading distributor of medical equipment in the country, is also expected to go public before the end of the year. Chaired by Virgilio Villar, the company is focused on three healthcare categories: diagnostic imaging, dialysis, and cancer therapy. It has been doing business with top multinational medical device companies, namely, Siemens Healthineers, B. Braun Avitum Philippines, and Varian Medical systems for the past several years.

“Our long-standing relationships with these global industry leaders will continue to strengthen our market position in the medical equipment distribution space in the Philippines,” Virgilio Villar said.

Medilines also works with other types of suppliers, including those involved in the production and distribution of consumables and accessories related to its various lines of equipment. It also offers services related to its infrastructure projects.

For the REIT market, Gokongwei-owned RL Commercial REIT Inc. (RCR) is set to debut on the market on Sept. 14 while Andrew Tan’s MREIT Inc. is targeting to list on Sept. 30.

Aside from these IPO-bound companies, a wellness salon chain and a bread company are also considering going public.

Ed Francisco, president of BDO Capital said these capital raising activities would enable companies to strengthen their balance sheets and expand their businesses when the economy reopens.

Japhet Tantiangco, analyst at Philstocks Financials, said the IPOs are seen to be reflective of companies’ hopes that eventually, the overall economic situation will get better.