By James A. Loyola
The Philippine Stock Exchange (PSE) hopes to surpass its performance this year in 2020 with more initial public offerings and other capital raising activities by publicly-listed firms.
In an interview, PSE President Ramon S. Monzon said “I hope to see about six IPOs as we had only four this year.”
He added that, they hope more listed firms will also be raising more capital from stock offerings—noting that a lot of firms had opted to issue fixed income securities this year.
“If you look at the listings at the fixed income exchange, you can see that this is one of their best years,” said Monzon adding that, “I hope many of these firms are reaching their limit for bonds and start going back to stocks next year.”
He added that, public listings and trading activity in the PSE will also pick up if the Securities and Exchange Commission finally approves the new rules for Real Estate Investment Trusts and short-selling of stocks.
Meanwhile, the SEC signed an agreement to support the PSE’s Bell Awards for 2020 which has been reformulated to incorporate the global and more comprehensive standards for environmental, social and governance (ESG) as its central framework.
In cooperation with MSCI Inc., the PSE is developing a framework that will cover the key ESG issues, taking into account industry-based global standards and best practices.
“We aim to create a fair and objective set of criteria that can evaluate the publicly-listed companies against global and comprehensive standards and best practices on sustainability,” said Monzon.
He added that, “the Exchange, in its evaluation, will refer to, and consider, publicly-available disclosures and other relevant data including, but not limited to, the company’s SEC Sustainability Report, Integrated Annual Corporate Governance Report, and its disclosures to the public.c