IPOs seen surging in 2025 amid rate cuts

The number of companies raising capital by offering its stocks to the investing public is expected to have a surge next year as the capital market's allure received a boost following the recent monetary easing.

At the sidelines of the Economic Journalists Association of the Philippines-AboitizPower Renewable Energy Forum in Makati City, BDO Capital and Investment Corporation president Eduardo Francisco told reporters that at least 10 companies have lined up for initial public offering (IPO) in 2025.

"There are 10 companies on my list, but I can't disclose them yet. They vary across sectors like real estate, consumer goods, retail, and even food," Francisco said.

The BDO Capital chief said the expected reduction in interest rates would trickle down to fixed income securities, such as bonds. With this, he said, "companies planning to go public now have a chance to compete with bonds."

In August, the Bangko Sentral ng Pilipinas' Monetary Board slashed policy rates by 25 basis points with another 50-basis point cut expected in one meeting.

"The capital structure requires the projects to be in place first. Once they start operating, that's when they can consider launching an IPO," Francisco said.

The Philippine Stock Exchange has so far completed three IPOs this year.

Completed IPOs include OceanaGold Philippines, Citicore Renewable Energy Corp., and NexGen Energy Corp. — VDV, GMA Integrated News