Fintech firms may drive IPO activity

THE financial technology (fintech) sector is expected to drive initial public offering (IPO) activity in the Philippine stock market later this year through 2027, Citigroup Inc. (Citi) said, as investor interest gradually returns to the local equity market.

Rob Chan, head of Equity Capital Markets (ECM) Syndicate for Asia at Citi, said the Philippine equity market is likely to remain stable, with several companies — particularly fintech firms — seen lining up potential listings.

“We could see more (IPO activity) coming from the Philippines, but that’s, to my understanding, perhaps later in the year, or perhaps even slipping into 2027,” he told reporters.

“What we are excited to see is, to the extent there’s going to be growth in businesses, especially around fintech names that investors are expecting,” he added.

IPO activity in the Philippines has been muted in recent years. In 2025, only two companies completed their listings, falling short of the Philippine Stock Exchange’s (PSE) target of six IPOs.

Cebu-based fuel distributor and retailer Top Line Business Development Corp. listed in April, while Maynilad Water Services, Inc. completed its IPO in November.

Mr. Chan said the Philippine market has historically not been among the region’s most active in terms of equity capital market transactions, citing relatively low trading liquidity as a key concern for international investors.

“The lower trading liquidity is something investors are very focused on,” he said.

Still, he pointed to Maynilad’s $500-million IPO and its strong aftermarket performance as a positive signal for the local market.

To see a transaction of that size trade well is a “very positive sign,” he said, adding that such deals help build confidence in the Philippines as an investment destination.

The PSE is targeting four potential listings this year, including electronic wallet platform GCash and PNB Holdings Corp.’s planned listing by way of introduction.

GCash was initially slated to go public last year, but its operator, Globe Fintech Innovations, Inc., deferred the plan due to weak market conditions.

Mr. Chan said the successful execution of these offerings could help lift overall equity capital market activity compared with recent years and attract greater interest from global investors.

“As those IPOs actually happen, that could increase the overall level of global investor focus on the Philippines,” he said.

He added that while Singapore remains the dominant market for equity capital transactions in Southeast Asia, the Philippines has shown gradual year-on-year growth in capital market activity over the past three years, with annual deal values reaching about $1 billion.

Mr. Chan said international investors are likely to continue focusing on larger, well-established Philippine companies with clear growth narratives, particularly in sectors such as fintech.

The Philippine Stock Exchange index rose 1.52% or 97.72 points to close at 6,487.53, while the broader all-share index gained 0.68% or 24.76 points to 3,660.70. — Katherine K. Chan