THE Philippines should follow the path of major global stock markets where technology companies dominate valuations, with a Cabinet official urging local tech firms to go public and transform the country’s sluggish bourse.
Department of Information and Communications Technology (DICT) Secretary Henry Aguda said his ‘advocacy’ offers a straightforward value exchange where companies raise expansion capital through initial public offerings (IPOs) while opening the booming tech sector to ordinary Filipino investors.
The proposition aims to transform the Philippine Stock Exchange (PSE) into a tech-driven marketplace similar to major global bourses where technology giants dominate valuations.
‘My advocacy for next year and the year after is this-for us to revive the stock market. Why can’t we do what other countries are doing, wherein those that have high capitalization are tech companies?’ Aguda said at the sidelines of the launch of Grab Asenso Center in Marikina.
Historically, the PSE is dominated by conglomerates, property developers, power companies, and banks, with technology representation remaining minimal despite the sector’s growing economic importance.
Aguda said tech companies going public will also ensure transparency in an industry that increasingly provides critical government services, given the repertorial requirements of listed companies.
‘For us, we have a scarcity of companies that service government IT projects. I am more confident if the company that services the government IT requirements is listed,’ he said.
Aguda also linked market maturity directly to development speed.
‘If the capital market of the country is mature, development will be faster,’ he said, explaining his position in advocating for the revival of the local bourse.
The PSE remains well below its prepandemic levels, with the benchmark PSEi hovering around 6,000 points compared to over 7,200 before the pandemic.
Despite steady economic growth, investor sentiment has yet to recover amid global uncertainties, high interest rates, and weaker foreign inflows.
‘I am encouraging all tech companies that are reputable, Filipino, and with good track record-they should start thinking about going public,’ Aguda said. ‘They should not wait for a mega listing. Let the capital markets now figure out who the best performers are.’
Public listing, he added, should not be exclusive to big tech companies, but should include ‘smaller IT systems integrators that have operated successfully for years but struggle to access growth capital.’
When pressed for examples of companies ripe for IPO, Aguda mentioned Grab Philippines and Mynt, which operates the ubiquitous GCash mobile wallet.
Grab Philippines Country Head Ronald Roda, whose parent company is already listed on the New York Stock Exchange, indicated a Philippine listing would require evaluation but stressed Grab’s commitment to the local market.
‘We are a serious investor in the Philippines,’ Roda said. ‘There are other ways to contribute to the Philippines and we will continue to invest as a whole.’