Back-to-back public offerings push PSE profits to new record high

MANILA, Philippines — The Philippine Stock Exchange Inc. posted “record” profits in 2021 boosted by back-to-back fundraising activities in the local stock market.

In a statement on Thursday, the operator of the local bourse reported a net income of P919.48 million last year, up 40% compared to its 2020 profits.

It was so far the PSE’s best financial performance, beating the previous record of P867.55 million set in 2014.

Explaining its financial results, PSE said operating top-line surged 25.3% year-on-year to P1.65 billion in 2021 after all revenue sources posted double-digit growth.

“2021 proved to be a record year for capital raising, in terms of number of offerings and amount raised. There have been five IPOs, four private placements so far this year, so we hope to see the same number of public offerings,” PSE President and CEO Ramon Monzon said.

Dissecting the company’s revenue sources, listing-related fees rose 28.3% year-on-year following the largest initial public offering (IPO) in PSE’s history as well as seven other maiden share sales in 2021. There were also 11 follow-on offerings, four stock rights offerings, and seven private placements last year.

Meanwhile, trading-related fees went up by 15.2% annually while service fees grew 26.1%.

“Our good financial position allowed us to pay a total of Php 11.00 per share in regular and special cash dividends early this month. This year’s total cash dividend distributed is the highest amount ever paid to PSE stockholders,” Monzon added. — Ian Nicolas Cigaral