By: Marites Toledo
The Philippine Stock Exchange (PSE) has strongly suggested to the small and medium enterprises to join the local bourse for them to grow aggressively.
PSE President Hans Sicat said the PSE is very much willing to help the SMEs business to improve further.
Sicat said PSE is strongly convincing the SMEs to raise funds through selling shares, or bonds, and join the PSE eventually for them to grow further.
Under the present condition, only big guns in the business joined PSE where their businesses have tremendously improved.
Only few joined the PSE that became successful like the DoubleDragon Properties Corp., Xurpas Inc., and Golden Haven Memorial Park Inc.
Other SMEs seeking to list on the stock exchange are Audiowav Media Inc. (P2.6 billion) and Xeleb Technologies Inc. (P800 million), among others.
Sicat said the truth of the matter is that “SMEs employ two-thirds of the workforce, but only comprise a third of the total contribution to the economy.”
“We think there is a much larger portion of SMEs that can take advantage of the capital markets,” Sicat said.
At the moment, two-thirds of corporate fund sources still come from bank lending and the remainder are sourced from the sale of stocks and bonds in the capital markets, PSE head said.
He said the capital markets are growing at a fast pace by around 45 percent to 50 yearly growth in online stock trading accounts, giving rise to a much larger market that can accommodate more firms wanting to list on the PSE.
“More and more investors are trying to participate in online systems, and it’s growing about 45 percent to 50 percent per annum. And the SMEs can take advantage of this to raise money to grow their businesses,” Sicat said.
He said PSE has many programs intended to SMEs for it to consider the stock exchange as a funding source.
The first is the mentoring system,” Sicat said as he mentioned PSE’s partnership with universities and communities aside from PCCI.
“We’re continuously talking to them [SMEs], and a lot are curious. I think we still need to talk to them more before we can see [more]listings taking place,” he added.
Sicat added that SMEs joining in the PSE and raise funds from the public will help in the government’s drive to push for inclusive growth in the country.