MANILA, July 3 (Reuters): Capital raising activity in the Philippine stock market is expected to reach around $ 4 billion this year, as a large number of companies make public debuts to fund the expansion, said the chairman of the stock exchange operator.

Recently launched consumer companies and real estate investment companies (REITs) are expected to transform the exchange, a historic regional laggard, into Southeast Asia’s largest market for initial public offerings (IPOs) this year.

The brokerage firm recorded 122.46 billion pesos ($ 2.49 billion) in capital raised through IPOs and the sale of existing shares in the first half of the year, surpassing the 104 billion pesos recorded for l set of 2020.

With four more IPOs and REITs lined up, funds raised this year will likely hit 2012’s record 228.33 billion pesos ($ 4.6 billion), Philippine President and CEO said. Stock Exchange Inc, Ramon Monzon, at a press conference.

“Due to the pandemic, debt financing, although very cheap, has become difficult as banks have had to tighten their lending standards,” Monzon said.

Another key driver is the launch of REIT, which are real estate companies that offer regular dividends, he added.

Some of the deals made include the $ 1 billion IPO of Monde Nissin Corp, the largest ever listing in the Philippines, in June, and the $ 302 million sale of DDMP REIT Inc shares in March.

In April, Del Monte Philippines Inc filed an IPO application that could raise up to 44.1 billion pesos, while a REIT unit of Megaworld Corp launches an IPO of up to 27.3 billion pesos. pesos.

The broader Philippines index is down 2.2% year-to-date, the region’s second worst performer after Malaysia. – Reuters

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