Optimism Grows on Philippine IPOs with Particular Focus on RE

The initial public offering (IPO) market in Southeast Asia continues to be optimistic, with a focus on renewable energy (RE) listings driving the growth of the IPO market in the Philippines.

In a Philippine Star report, ASEAN stock exchanges said investor caution remains high due to macroeconomic uncertainty, geopolitical tensions and rising interest rates.

As a result, IPO activity in the region slowed significantly, raising only $1.4 billion in the first half of 2024, compared to $5.8 billion during the same period last year. The largest decline was seen in Indonesia, while Singapore was the only country to see an increase in IPO proceeds.

In the Philippines, the government’s active promotion of RE projects is driving demand for capital market financing. This has led to a steady stream of IPOs from the energy sector.

In the first half of 2024, the Philippine Stock Exchange (PSE) recorded two IPOs, raising $200 million for a market capitalization of $942 million. ASEAN exchanges highlighted that two of the three new listings in 2023 were from the renewable energy sector, a trend that is expected to continue.

The recent IPO of renewable energy company NexGen Corporation is expected to encourage more renewable energy companies to list on the stock exchange, further strengthening the IPO market in the Philippines.

PSE has set a target of six IPOs for 2024, with an estimated capital of PHP175 billion. Three companies have already gone public this year, including NexGen, following the debuts of OceanaGold Philippines Inc. and Citicore Renewable Energy Corporation

ASEAN exchanges believe that, thanks to strategic reforms and sectoral opportunities, especially in renewable energy, the region’s IPO market has significant growth potential despite ongoing challenges.