Where can a company raise more capital ?

FOR ANY company looking to expand, the Philippine Stock Exchange is a cheaper source of funds, much cheaper than what a company can get from bank loans or corporate debt (bond).
By listing in the stock market exchange, according to PSE President Hans Sicat, a company takes advantage of local and foreign investors looking for companies to invest or trade.
“This is an excellent opportunity to raise equity funds from investors to expand business operations,” wrote Sicat in a message sent to companies, inviting them to list in the PSE.
Long-term investors like insurance firms, banks, pension funds, mutual funds, hedge funds, etc are always looking around for new companies listing in the stock exchange, jumping on the chance to invest in a new, growing company. All these firms are ready to invest millions in a new listed firm.
Although listing in the stock exchange has more stringent rules and requirements than applying for a bank loan, overcoming this hurdle is worth the time, costs and effort in the long run.
Sicat said the benefits of “going public” far outweigh all the hassles that a company has to go thru to get listed. “Being listed, you know, boosts a company’s corporate image, gives it high market visibility and credibility, even a certain aura of maturity” he said.
Over the last few years, most specially after the 2008 global financial crisis, the PSE has seen an sharp increase in the number of companies going public—listed in the stock exchange— from just over a hundred to 252 companies raising a whopping capital of P10.15 Trillion.
“It’s the highest record to date in the history of the stock exchange despite the financial crisis,” PSE Chairman Jose Pardo said in a letter to companies planning to list in the exchange.
Pardo expressed optimism in the growing trend of Philippine companies to raise new capital, not by borrowing, but by selling company shares of stocks—part of the ownership— to the investing public.
“We’re seeing the changing mindset of local companies towards the stock market as a source of raising new capital compared to borrowing,” Pardo said.
Financial products being marketed in the stock exchange include Equities (stocks), Warrants, Deposit Receipts and Real Estate Investment Trusts (REIT), all being bought and sold daily with average value turnover of P7.61 Billion, according to Pardo.
“What’s nice about it, is that being listed in the stock exchange guarantees proceeds to the company with cheaper funds, opening other sources of funds and they can easily return to the market to raise more funds,” Pardo said.
The Philippine stock market, according to Pardo, is one of Asia’s best performing stock markets when its index hit an all-time year-to-date growth of 19.6% , besting other Asian countries like Hong Kong, Singapore, India, Japan, China, South Korea, Taiwan, Malaysia and Indonesia.
(Comments? Email me at :  aurelio_pena@yahoo.com)