Rising interest rates to drive more companies to join bourse, says PSE chief MANILA – The Philippine Stock Exchange (PSE) sees companies returning to the equities market in the coming months to lock in their fundraising requirements, as central banks around the world start raising interest rates from record lows. PSE president and chief executive officer Hans B. Sicat last week told reporters that the bourse is keeping its 2014 target of signing up 10 new names either through initial public offering (IPO), listing by way of introduction or backdoor listing. I think were going to see more action in the next few weeks in terms of the IPOs coming back, he said. Two new names – Trans-Asia Petroleum Corp. and Phoenix Semiconductor Philippines Corp. – have cleared regulatory hurdles to listing. Trans-Asia Petroleum will undertake a listing by way of introduction, while Phoenix Semiconductor is contemplating on pushing back its share sale after the ‘ghost month’ of August. If youre a corporate, you probably want to do your fundraising now, in 2014. The global uncertainty level rises in 2015 with the expected increase in rates among others, which means the global financial environment will change including demand for emerging market assets, Sicat said. Last week, the Monetary Board of the Bangko Sentral ng Pilipinas decided to hike its overnight borrowing and lending rates for the first time in more than three years, a pre-emptive measure to keep inflation within target. The Federal Open Market Committee is studying how long to keep key interest rates near zero with its stimulus program set to end later this year. Analysts are anticipating the US central bank to begin raising interest rates in 2015, the first increase since 2006. So far, three new companies have joined the local bourse. Top Frontier Investment Holdings Inc. entered the stock market through listing by way of introduction, while Double Dragon Properties Corp. and Century Pacific Food Inc. conducted initial public offerings. After taking over Pancake House Inc. in February, the Maxs Group Inc. infused all its assets into the listed company, paving the way for its backdoor listing into the stock market. interaksyon/business/92547/rising-interest-rates-to-drive-more-companies-to-join-bourse-says-pse-chief
Posted on: Mon, 04 Aug 2014 01:08:22 +0000
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