IPO activity stalls in Philippines amid market slump and fallout from flood control scandal

INITIAL PUBLIC OFFERINGS (IPOs) on the Philippine Stock Exchange (PSE) slumped to just two this year as uncertainty over US tariffs and a high-profile corruption scandal weighed on investor sentiment, according to analysts.

- By Alexandria Grace C. Magno

Only two companies completed their IPOs this year, one less than in 2024. It was also lower than the six IPOs expected this year by PSE President and Chief Executive Officer Ramon S. Monzon.

"There were too much uncertainty and disruption this year. First it was Trump and his policies, then the midterm elections, and now the flood control scandal," China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

"Some potential IPO candidates also backed out because market valuations were not enticing enough," he added.

Top Line Business Development Corp., a fuel distributor and retailer based in Cebu, completed the first IPO of the year on April 8, while Maynilad Water Services, Inc. made its market debut on Nov. 7.

Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the weak IPO listing performance this year is mainly due to the poor overall market conditions.

"Year-to-date, the local market is down by 7.25%. Net value turnover is averaging P5.92 billion per day. The numbers show that investors don't have that much confidence in the market given the headwinds that we are facing," Mr. Tantiangco said.

"Without confidence, there is no appetite. This in turn is what makes companies hesitant on raising funds in the stock market."

Recent cuts by the Bangko Sentral ng Pilipinas (BSP) have reduced the benchmark rate to 4.5%, the lowest in over three years.

"Interest rates are currently declining, in turn, giving companies a good alternative if they want to raise capital," Mr. Tantiangco said.

Unicapital Securities, Inc. Equity Research Analyst Peter Louise D. Garnace said 2025 was an extremely volatile year for the markets due to local and global headwinds.