With at least three more expected initial public offerings for the remainder of the year, local bourse operator Philippine Stock Exchange expected the number of its maiden offerings to reach a 26-year high.

Year-to-date, the PSE has had eight IPOs, matching the number of IPOs for the entire 2021.

While it is far from the PSE's record of 21 IPOs, this will put an end to the single-digit IPOs since 1997.

The most number of initial public offerings were in 1994 at 21; 1995 at 16; 1996 at 13; 2007 at 9; 2013 at 8; and 2021 at 8.

PSE president and CEO Ramon Monzon attributed the number of IPOs for the year to a confluence of several factors.

"We see companies requiring capital to fund their post-pandemic recovery plans. At this time of high interest rate regime, selling shares to the public is a more viable option than taking out loans. It helps that we relaxed our listing rules last year and government repealed the IPO tax under Republic Act 11494 also known as the Bayanihan to Recover as One Act or Bayanihan II," he said.

Measures fuel IPO advance

The Amended Listing Rules of the PSE and the Bayanihan II IPO tax repeal have contributed to a faster, more accessible road to IPO.

In March 2021, the Securities and Exchange Commission approved the amendments to PSE's Consolidated Listing and Disclosure Rules.

Among the salient items in the amended rules include time-bound relief for IPOs filed in 2021 and 2022.

This provision permits the PSE to consider, on a case-to-case basis, the profitability of the applicant for any two fiscal years in the three most recent fiscal years, excluding the year of the impact of the Covid-19 pandemic.

For instance, if the pandemic-induced negative impact on the financial condition and results of operations occurred in 2020, the two most recent fiscal years shall be 2019 and 2021.