Optimism continues to surround the Southeast Asian initial public offering (IPO) market, focusing on renewable energy (RE) listings that are boosting the Philippine IPO landscape.
In a report by Philippine Star, ASEAN Exchanges said that investor wariness remained high due to macroeconomic uncertainties, geopolitical tensions, and rising interest rates.
As a result, IPO activity in the region saw a significant slowdown, raising only USD 1.4 billion in the first half of 2024, compared to USD 5.8 billion in the same period last year. The largest decline was observed in Indonesia, while Singapore was the only country to see a rise in IPO proceeds.
In the Philippines, the government’s active promotion of RE projects is driving demand for capital market funding. This has led to a steady stream of IPOs from the energy sector.
In the first half of 2024, the Philippine Stock Exchange (PSE) recorded two IPOs, raising USD 200 million with a market capitalization of USD 942 million. The ASEAN Exchanges highlighted that two out of the three new listings in 2023 were from the renewable energy sector, a trend expected to continue.
The recent IPO of NexGen Corporation, a renewable energy firm, is expected to encourage more RE companies to go public, further enhancing the IPO market in the Philippines.
The PSE has set a target of six IPOs for 2024, with an estimated Php 175 billion in capital to be raised. Three companies have already gone public this year, including NexGen, following the debuts of OceanaGold Philippines Inc. and Citicore Renewable Energy Corporation
The ASEAN Exchanges believe that with strategic reforms and sector-specific opportunities, particularly in renewable energy, the region’s IPO market holds significant growth potential despite ongoing challenges.
