MORE small and medium enterprises (SMEs) are raising funds through initial public offering, as the Securities and Exchange Commission (SEC) is reviewing the application of more firms that want to go public.
“The SEC is well aware of SMEs’ limitations in accessing capital for their business growth. The developments show that the SEC is actively engaged in encouraging SMEs to examine their financing options by considering tapping the capital markets,” the SEC said.
The value of money being raised, however, are smaller and only in the hundreds of millions of pesos compared to the bigger firms that can raise billions of pesos.
“SMEs can always count on the SEC’s commitment to support them as they pursue their lofty business goals, which ultimately contribute to the country’s growth,” the agency said.
The SEC already approved the registration statement of Philstocks Financial Inc. to raise some P185.89 million.
The company is offering 98.88 million shares for primary offering at an offer price of P1.88 per share.
Philstocks Financial Inc. is the first broker dealer to tap the capital market.
Last month the SEC approved the registration statement of real-estate developer Italpinas Development Corp. for its P242.01-million initial public offering.
Italpinas may list its shares by next month.
Still under review is Philippine Primark Properties Inc., as the company hopes to raise some P1.69 billion. It will sell some 704.46 million shares as its primary offering at an offer price of P1.7 per share.
Last year at least three SMEs went public.
These were the real-estate firm DoubleDragon Properties Corp., software company Xurpas Inc. and specialty retailer SSI Group Inc.
Both DoubleDragon and Xurpas were able to increase its offer price by several times weeks after it started trading at the Philippine Stock Exchange (PSE). DoubleDragon was offered at P2 per share and is currently trading at P23.90, and Xurpas started at P3.97 and now at P16.22 per share. SSI, meanwhile, followed an opposite path with its share price offered at P12.50 apiece and is now being traded at P4.14. The steepest fall of its share price, however, only happened this year. Earlier this year, Crown Asia Chemicals Corp. raised P222.78 million from the equities market and SBS Philippines Corp. was able to get P1.16 billion from the PSE.