Higher PSE fundraising target points to improving issuer confidence — analysts

By Alexandria Grace C. Magno, Reporter

THE Philippine Stock Exchange’s (PSE) decision to raise its capital-raising target for 2026, based on applications received so far, suggests companies are becoming more willing to tap the domestic equity market for growth capital, although structural challenges continue to constrain the local capital market, analysts said.

“The PSE’s decision to raise its capital-raising target reflects a noticeable improvement in issuer confidence and suggests that corporate sentiment toward the domestic capital market is becoming more constructive,” Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message on Tuesday.

“It indicates that companies are increasingly willing to access the equity market for growth capital rather than relying solely on bank financing or private funding,” he added.

The PSE expects companies to raise about P204 billion through the capital market in 2026, based on applications received so far, exceeding its initial target of P170 billion.

PSE President and Chief Executive Officer Ramon S. Monzon said the revised forecast reflects applications received to date for initial public offerings (IPOs), preferred share offerings, and private placements.

The exchange has so far received applications for two IPOs this year: VITRO, Inc. and Mynt, Inc.

VITRO, PLDT Inc.’s data center arm, has filed an application for what could become the country’s first digital infrastructure real estate investment trust (REIT). It is seeking to raise up to P24.2 billion.

Mynt, the operator of e-wallet GCash, has filed for an IPO that could raise as much as P92.3 billion. The company is targeting a fourth-quarter debut on the PSE.

Mr. Monzon said a P30-billion preferred share follow-on offering by San Miguel Corp. (SMC) is also in the pipeline this year.

He added that the exchange has received applications for a P9-billion preferred share listing by a company whose common shares are not listed on the PSE, as well as a P4-billion private placement of preferred shares.

Mr. Arce said the stronger pipeline of IPOs, follow-on offerings, and other equity issuances suggests companies believe market conditions are supportive enough to secure acceptable valuations and investor demand.

“While this does not necessarily imply a broad-based recovery in the stock market, it does indicate that corporate boards and shareholders see a more favorable fundraising environment than they did in recent years,” he said.

Mr. Arce cautioned that the stronger fundraising pipeline does not mean the domestic capital market’s longstanding challenges have disappeared.

“If the current pipeline is successfully executed, it could mark the beginning of a healthier capital formation cycle characterized by more IPOs, increased follow-on offerings, and greater investor participation,” he said.

“While one strong fundraising year alone will not address long-standing issues such as liquidity and limited market depth, sustained success in attracting quality issuers would represent an important step toward strengthening the Philippine capital market and restoring its role as a primary source of long-term financing for growing companies.”

Meanwhile, Investment & Capital Corp. of the Philippines President and Chief Operating Officer Jesus Mariano P. Ocampo said the PSE’s roughly P200-billion capital-raising target is largely driven by the planned offerings of GCash, VITRO REIT, and the listing by way of introduction of PNB Holdings Corp. (PHC).

“GCash and VITRO are in process already,” he said in a Viber message, adding that the timing of the PNB Holdings listing remains uncertain.

Mr. Ocampo said the key question for the year’s largest equity offerings is whether investors will accept their valuations.

“My only worry is whether the markets will accept their valuations,” he said.

He said VITRO REIT is likely to be evaluated primarily on its dividend yield, while GCash is expected to be assessed on its growth prospects, particularly its lending business.

“This is ‘new territory’ for GCash. Their only advantage versus other lending fintechs is that prospective borrowers are already on their platform,” he said.

Philippine National Bank (PNB) said on Monday that its property arm PHC continues to prepare for its proposed listing by introduction on the PSE, although the timing of the transaction remains under review.

PNB said PHC is undertaking documentation and other preparatory requirements for the proposed listing, including coordination with the PSE and other regulators.

The PSE earlier set a P170-billion capital-raising target for 2026 despite market volatility arising from the Middle East conflict and issues surrounding flood control projects. The target exceeded the P144.14 billion raised in 2025.

In the first half of 2026, the PSE raised about P39.4 billion through two private placements and preferred share follow-on offerings, Mr. Monzon said.

Mynt, a partnership among Globe Telecom, Inc., Ayala Corp., and Ant International, operates GCash through its wholly owned subsidiary, G-Xchange, Inc., and provides lending services through Fuse Financing, Inc.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls.