The Philippine Stock Exchange (PSE) reported a 25.1% decline in net profit attributable to the second quarter to 170.46 million pula from 227.57 million pula a year earlier, after allocating provisions to the price of the market.
“The net result was slightly lower […] due to a large marketing provision for our investments of 106 million pesos,” PSE President and CEO Ramon S. Monzon said in a press conference on Saturday.
In the second quarter, PSE’s mark-to-market loss on financial assets at fair value reached 140.52 million pesos, a reversal from last year’s gain of 57.68 million pesos.
Market value losses occur when securities are valued at a lower market value than the price paid to acquire them.
“The funds were invested in locally traded equity securities and US dollar-denominated bonds,” the company said in its report on Friday.
PES net income attributable to the parent company slipped 1% in the first half to P374.05 million from P377.98 million a year ago.
Its market loss in the first half amounted to 145.29 billion pesos, a considerable jump from the 3.58 million pesos of the previous year.
Meanwhile, the local stock exchange operator is encouraging more bid solicitations in order to reach its target of 200 billion pesos from capital-raising activities in 2022.
“We hope to receive more applications and hope to reach 200 billion pesos by the end of the year,” Monzon said at the press conference.
PSE was able to raise capital of 76.17 billion pesos thanks to offers since the beginning of the year, which came from eight initial public offerings (IPO), five private placements and three offers of rights to buy d shares (SRO).
“At the rate we are going, we believe we will have a record number of IPOs in any given year for 2022. However, we do not believe we can […] break through the same amount of capital raised last year,” Mr. Monzon said.
“Our listing pipeline remains strong. We have four IPO applications and two SRO applications. An additional 72.61 billion pesos is expected to be raised from these six fundraising activities,” he added.
The SROs come from Globe Telecom, Inc., headed by Ayala, worth 32 billion pesos and Solar Philippine Nueva Ecija Corp., worth 3.3 billion pesos.
The IPOs the operator plans to list this year are: Upson International Corp. worth 5.43 billion pesos, Prime Infra Capital, Inc. worth 28.19 billion pesos, ORCA Cold Chain Solutions worth 1.6 billion pesos and Alternergy Holdings Corp. 2.18 billion pesos.
“At the moment, we don’t think we could reach the same record as last year, but we hope that we can at least reach the level of 200 billion pesos in terms of the amount of capital raised,” said Mr. Monzon. .
On the other hand, he said market volatility remains a success factor for second-half IPOs.
“With market volatility and the level of the market falling, some companies that are planning to go public may put off these IPO plans because they will not be able to realize the price or valuation that ‘they have for their businesses,’ Mr. Monzon said. said. — Justine Irish D. Tabile