IPOs Expected to Surge in 2025 Amid Anticipated Rate Cuts

The Philippine capital market is poised for a surge in initial public offerings (IPOs) in 2025, with at least 10 companies expected to go public. This boost comes as the market benefits from recent monetary easing measures, making IPOs more attractive to investors.

BDO Capital and Investment Corporation President Eduardo Francisco revealed that the companies preparing for IPOs span various sectors, including real estate, consumer goods, retail, and food. “There are 10 companies on my list, but I can’t disclose them yet,” Francisco said at the Economic Journalists Association of the Philippines-AboitizPower Renewable Energy Forum.

The anticipated reduction in interest rates by the Bangko Sentral ng Pilipinas (BSP), following the recent 25-basis point policy rate cut in August, is expected to further enhance the appeal of equities over fixed income securities like bonds. Another 50-basis point cut is predicted in an upcoming BSP meeting.

With lower interest rates, companies aiming to go public can better compete with bonds, improving the overall capital market environment. “Companies planning to go public now have a chance to compete with bonds,” Francisco noted.

The Philippine Stock Exchange (PSE) has completed three IPOs in 2024, with OceanaGold Philippines, Citicore Renewable Energy Corp., and NexGen Energy Corp. among the latest companies to list.