• ICTSI is within striking distance of becoming the first PSE Index stock to reach a P2 trillion market valuation.
• Despite its record-breaking run, market circles are discussing an unlikely scenario: whether the global ports giant could eventually seek a listing outside the Philippines.
• With ICTSI accounting for roughly a quarter of PSE Index movements, any future delisting would have repercussions far beyond a single stock.
Philippine Stock Exchange investors have become accustomed to seeing strong but undervalued companies leave the local bourse.
But few expected the next company linked to such speculation would be tycoon Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI).
ICTSI, the world’s largest independent operator of cargo ports, is not an overlooked stock.
It is arguably one of the market’s biggest winners, with a price gain of 128 percent in the past 12 months and more than 12,600 percent since it went public in 1992.
The speculation involves ICTSI moving to a booming offshore exchange such as the Hong Kong Stock Exchange.
ICTSI’s management is aware of the rumor but declined to confirm or deny plans.
“It’s all speculation and we can’t comment,” an insider said.
ICTSI's record rally
This also comes as investors have increasingly turned to ICTSI as the market’s preferred vehicle for gaining exposure to the Philippines despite mounting growth risks.
This pushed the stock price to successive record highs.
It gained another 5.8 percent to P950 on Monday, positioning it within a few pesos of a P2 trillion valuation, the largest on the PSE Index and more than 2.5 times the value of No. 2 firm SM Investments Corp., the holding company of the Sy family.
With a public float of about 50 percent, a tender offer would be worth close to P1 trillion at prevailing prices.
Priced like a global giant
A dealmaker with exposure to global markets said the rumor has reached their firm, although this was deemed an unlikely scenario at this point.
“ICT is now trading at similar valuations as global peers. So listing elsewhere may not necessarily see a massive re rating in its share price,” the deal expert said.
This means investors are already pricing ICTSI much like comparable global port operators, limiting the potential upside that might come from a foreign listing alone.
A second dealmaker said such the move would be so disruptive it might prompt President Ferdinand Marcos Jr. to personally intervene.
With a 20 percent to 25 percent weighting in the PSE Index, ICTSI alone drives nearly a quarter of the stock market’s daily movements.
SM’s unexpected opportunity
Should ICTSI ever pursue a delisting, some of the money looking specifically for Philippine exposure could end up flowing to SM Investments, which is trading at a fraction of ICTSI’s valuation.
“SM will benefit if ICT leaves. It’s the second largest company and it’s so cheap now,” the first dealmaker said.
“Many clients that are looking at the Philippines have opted to just own ICTSI. Assuming ICTSI delisting happens, then a percent of investors will have to sell ICTSI and invest in other names in the Philippine market,” the deal expert added.
SM Investments is trading at an estimated 8 times earnings versus more than 28 times for ICTSI.
What's fueling the speculation?
For one, listing in Hong Kong better reflects ICTSI’s global footprint, with deeper liquidity and greater access to international capital.
The PSE Index has been largely flat this year, though it joined a global rally on June 15 after the United States and Iran announced a preliminary peace deal that eased fears over oil supplies and geopolitical tensions.
The PSE Index soared 6.2 percent by the noontime close on Monday, finishing the morning session at 6,275.
Hong Kong has re-emerged as one of the world’s hottest capital markets, leading global IPO fundraising while attracting a growing pipeline of new listings.
One fund manager said several joint Philippine-Hong Kong investment projects have been pushed back as advisers focus on Hong Kong’s crowded listing pipeline.
“They have a pipeline of over 400 IPOs,” the investment manager told InsiderPH.
Last June 8, tycoon Tony Tan Caktiong’s Jollibee Foods Corp. signaled it was open to Hong Kong for the planned listing of its international business, following a Bloomberg report that it was reviewing alternatives to the United States.
Strong Q1 momentum
ICTSI entered 2026 with momentum intact.
It posted a 29 percent increase in recurring earnings to $308 million and a matching 29 percent rise in revenue to $961 million.
The strong performance gave management confidence to maintain a $740 million global expansion program despite growing uncertainty over trade and geopolitical tensions.
ICTSI buys back shares at the highs
Investors also noticed that ICTSI is buying back shares, as the move is more commonly associated with undervalued stocks, not when a company trades at all-time highs.
The program has been in place since 2015 and expanded several times. The recent transaction involved spending about P300 million to buy back 400,000 shares on June 1.
Since 2015, ICTSI has repurchased P14.3 billion worth of stock and now has nearly 26 million treasury shares.
While the shares may eventually be used for employee compensation or other strategic purposes, the ICT insider offered a different explanation as the stock traded near P900 per share last week.
“We still see a lot of value at this level,” the insider said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
