SMEs Alternative Way of Financing Business Expansion — Only few companies take advantage of the stock market as a main source to increase capitalization. That is why, the Philippine Stock Exchange Inc. (PSE) is urging small and medium enterprise (SME) to capitalize on the benefits of enlisting in the stock market as an alternative way of financing their business expansion.
According to PSE President Val Antonio B. Suarez, companies should examine properly the benefits they can get from entering into Initial Public Offerings (IPOs), rather than holding on to the impression that doing so requires a lot of requirements.
The requirements of the Exchange are not insurmountable, but doable. The disclosure requirement is important in order to provide transparency to investors. Like for example in Cebu City, despite the active stance of the PSE to attract companies to register in the Stock Exchange in the last few years, only few Cebu-based corporations have entered the equity market.
Of the 250 listed companies at the PSE, only a handful of Cebu-based businesses are benefiting as players in the stock market. These include Aboitiz Equity Ventures, Aboitiz Power, Cebu Holdings Inc., Cebu Property Ventures Development Corp., Waterfront Philippines Inc., among other firms.
Currently, the PSE has yet to rely on investment bankers such as Vicsal Investment Inc., and First Metro Investment Corporation, to drive interest among local companies to get into the stock market.