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Philippines: ‘Attract more investors by removing touch points’

  • Dec 27, 2017

THE Philippines should get rid of many touch points for initial public offerings (IPO), bond subscriptions and other investments in order to entice more people to invest in the local market, BDO Capital and Investments Corp. said on Tuesday.

In a statement, BDO Capital President Eduardo Francisco said too many touch points were discouraging players from investing, adding that subscribing to equities and bonds have become inconvenient because of the numerous documents, forms, and identification details required.

“Our Monetary Board, the Securities and Exchange Commission [and the]Philippine Stock Exchange are open to new ways to raise the number of investors and make it more available to the masses. We have seen them liberalize rules, but we need to propose new products or solutions,” Francisco said.

In a span of five years, Philippine companies were able to raise over P1.7 trillion from five to eight IPOs and 10 to 15 corporate bond offerings annually.

Retail investors also stepped up, especially for local equity and fixed income deals, and now account for 50 percent to 70 percent of volume compared to about 60 percent to 70 percent in previous years.

“Although the scenario has gotten better, the number of IPOs and bond issues in the country still pale in comparison to other emerging economies in the region,” BDO Capital said.

“While participation from retail investors has increased, most of the investors are coming from the more affluent retail, leaving a huge untapped market, such as overseas Filipino workers and the unbanked sector,” it added.

Local capital markets should also welcome new platforms and models from global peers, particularly solutions minimizing documentation, that can be adopted.

“Foreign players with platforms abroad are welcome to bring it here. Fintech solutions are also welcome and we can work with the regulators to get approvals,” Francisco said

Source: http://www.manilatimes.net/attract-investors-removing-touch-points/370828/