The financial technology (FinTech) sector is expected to drive initial public offering (IPO) activity in the Philippine stock market from late this year through 2027, Citigroup Inc. (Citi) said, as investor interest gradually returns to the local equity market.
Rob Chan, head of equity capital markets (ECM) syndicate for Asia at Citi, said the Philippine equity market is likely to remain stable, with a number of companies – particularly fintech firms – looking at potential listings.
“We may see more (IPO activity) from the Philippines, but my understanding is that there may be a decline, probably towards the end of the year, or maybe even 2027,” he told reporters.
“We are excited to see the extent to which the businesses will grow, particularly around the fintech names that investors are anticipating,” he said.
IPO activity in the Philippines has been quiet in recent years. In 2025, only two companies completed their listings, falling short of the Philippine Stock Exchange (PSE)'s target of six IPOs.
Cebu-based fuel distributor and retailer Top Line Business Development Corp. listed in April, while Maynilad Water Services, Inc. completed its IPO in November.
The Philippine market has historically not been among the most active markets in the region in terms of equity capital markets transactions, Mr. Chan said, citing relatively low trading liquidity as a major concern for international investors.
“Low trading liquidity is something that investors are very focused on,” he said.
Still, he cited Maynilad's $500 million IPO and its strong aftermarket performance as a positive sign for the local market.
Seeing a transaction of that size is a “very positive sign”, he said, adding that such deals help build confidence in the Philippines as an investment destination.
PSE is targeting four potential listings this year, including electronic wallet platforms GCash and PNB Planned listing of Holdings Corp. by way of introduction.
GCash was initially scheduled to go public last year, but its operator, Globe Fintech Innovation, Inc. Shelved the plan due to weak market conditions.
Mr Chan said the successful execution of these offerings could help increase overall equity capital markets activity compared with recent years and attract greater interest from global investors.
“As those IPOs actually happen, they could increase the overall level of focus of global investors on the Philippines,” he said.
He said while Singapore remains the leading market for equity capital transactions in Southeast Asia, the Philippines has seen sequential year-on-year growth in capital markets activity over the past three years, with annual deal value reaching nearly $1 billion.
Mr Chan said international investors may continue to focus on large, well-established Philippine companies with clear growth narratives, especially in sectors such as fintech.
The Philippine Stock Exchange index rose 1.52% or 97.72 points to close at 6,487.53, while the broader all-share index rose 0.68% or 24.76 points to 3,660.70. — Katherine K. chan