PSE chief says losing Razon’s port giant ICTSI would keep him up at night

Insider Spotlight

• PSE's Monzon says all delistings hurt, but losing ICTSI would keep him “awake for weeks” if their top index stock ever leaves the exchange.
• ICTSI is now worth about P1.84 trillion, making it the largest company on the Philippine stock market after a more than 120 percent rally over the past year.
• The PSE is pushing reforms to deepen liquidity and encourage more listings as it works to keep companies raising capital in the Philippines.

The head of the Philippine Stock Exchange (PSE) has seen companies come and go. Losing one particular firm, however, might be enough to keep him awake at night.

“If the number one listed company in the market will delist, I won’t be able to sleep for weeks,” PSE president and CEO Ramon S. Monzon said on Saturday.

He was responding to a question on market speculation that tycoon Enrique Razon Jr.’s International Container Terminal Services—which runs a global cargo port empire—could leave the exchange and list in an offshore market like Hong Kong.

InsiderPH first reported the market rumors, although ICTSI declined to comment.

“It will not bother me only. I think it will bother not only the stock exchange but probably the country because the capital market is a representative of the economy,” Monzon said.

No talks

But he noted that Razon, whom he described as a friend, had never discussed such a plan.

“I don’t respond to rumors,” he said. “He has not even asked me about this or talked to me about this. So it’s very hard for me to address something that’s speculative.”

A market heavyweight

Monzon said ICTSI’s recent stock price surge has lifted its valuation well above the broader Philippine market and to levels comparable with leading global peers.

“I’ve been following ICTSI closely because I’m waiting for them to hit a certain milestone, upon which they will be the first P2-trillion listed company,” Monzon said.

ICTSI, which trades under the stock symbol ICT, has gained over 120 percent in the past 12 months.

Its shares last traded at P913 apiece, making it the most valuable member of the PSE Index with a market capitalization of P1.84 trillion.

This is more than double the value of the next most valuable index stock, SM Investments Corp.

“ICTSI is the superstar in our market,” Monzon said.

Natural evolution

Monzon noted the stream of delistings is troubling, but said this also happens in more developed markets and is a sign of market activity in the sense that issuers have the option to list and exit.

“New companies will list, some will want to delist. It’s like that,” he said.

Asian Terminals has exited the stock market, while MerryMart and Robinsons Retail are pursuing delisting plans.

Keeping firms home

But even then, all delistings “bother” the exchange CEO, which is why the PSE is lining up reforms and encouraging more firms to raise capital, although it has not been easy amid volatility caused by the US.-Iran war.

He said the exchange’s challenge is to ensure listed companies continue to see value in remaining in the Philippines through better market infrastructure and regulatory support.

“We just have to make sure that all the listed companies here are supported by good infrastructure [and] good treatment by the regulators,” he said.