Market Insights Financial Corporate Finance

Initial Public Offerings - Philippines

Philippines

The transaction value in the Initial Public Offerings market is projected to reach US$0.33bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 24.24% resulting in a projected total amount of US$0.41bn by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$65.50m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

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Analyst Opinion

The Initial Public Offerings market in Philippines has been experiencing significant growth and development in recent years.

Customer preferences: Investors in the Philippines are showing a growing interest in Initial Public Offerings (IPOs) as a way to diversify their investment portfolios and capitalize on the potential returns offered by newly listed companies. This trend is in line with the global shift towards seeking alternative investment opportunities beyond traditional asset classes.

Trends in the market: One noticeable trend in the Philippines' IPO market is the increasing number of tech startups and companies from emerging industries going public. This trend reflects the growing confidence in the country's tech sector and the potential for innovation-driven companies to attract investor interest. Additionally, there is a trend towards larger IPO sizes, indicating a maturing market with companies looking to raise substantial capital to fuel their growth ambitions.

Local special circumstances: The regulatory environment in the Philippines plays a crucial role in shaping the IPO market. The Securities and Exchange Commission (SEC) of the Philippines has been taking steps to streamline the IPO process and make it more efficient for companies to go public. This supportive regulatory framework has contributed to the increasing number of companies choosing to list on the Philippine Stock Exchange.

Underlying macroeconomic factors: The overall economic stability and growth prospects of the Philippines are key underlying factors driving the development of the IPO market. With a robust economy and a young, tech-savvy population, the country offers a favorable environment for companies looking to tap into the capital markets. Additionally, the government's focus on infrastructure development and economic reforms is boosting investor confidence and creating opportunities for companies to expand through IPOs.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.