The companies behind Okada Manila in the capital’s bayside gaming district and Hann Casino Resort in Clark Freeport Zone, the former US airbase north of Manila, may benefit from a growing economy that could improve equity valuations.

The two integrated resort operators, which had postponed plans to go public partly due to falling share prices, have targeted to each raise around US$200 million (RM896 million), Gabriel Lim, head of corporate finance at BDO Capital and Investment Corp, said in an interview on Thursday (Nov 14). BDO Capital is the investment bank unit of top lender BDO Unibank Inc.

An improvement in the Chinese economy following the rollout of stimulus measures could spur high-roller bets in major casinos, and may also encourage the resumption of their IPO plans, BDO Capital president Eduardo Francisco said during the same interview.

Several infrastructure and food companies are also interested to go public, Francisco said, declining to identify them as discussions are preliminary.

But those plans may have to wait until the market recovers. Philippine shares entered a technical correction this week from a peak last month, on slower-than-expected third-quarter economic growth and uncertainties over US President-elect Donald Trump’s policies.

Manila’s benchmark stock index rose 1.7% to 6,668.18 at 10:23am on Friday, ending a seven-day decline that was its longest streak in nearly five months.

The bank’s securities arm had expected the key stock index to hit 7,500 by year-end, but is now reviewing its estimate amid global and domestic uncertainties, including those related to the US following Trump’s win.

“It’s hard to make a call in the midst of chaos,” said Lim, who also heads BDO’s securities unit.

Only three companies have listed on the Philippine Stock Exchange this year, the same number in 2023, and putting it on course to miss its target of six IPOs. Fuel trader Top Line Business Development Corp has said it will proceed with its IPO in the weeks ahead, despite the current market volatility.

“Before the US election, we were very, very bullish. Now, we are still bullish but not as much, but we are still optimistic,” Francisco said. “In terms of capital expenditures, generally, the companies are not changing courses. But it affects their capital raising plans.” 

Positive prospects for the consumption-driven Philippine economy despite external headwinds and the central bank’s plan to reduce interest rates further, may provide fillip to the market, Francisco said. 

“It is not as gloomy as we think,” he added.

Uploaded by Liza Shireen Koshy