As global economic headwinds persist, keeping the Philippine Initial Public Offering (IPO) market quiet through 2024 and 2025, Unicapital, Inc. is advising companies to leverage this period for intensive internal readiness.
The financial advisory firm asserts that disciplined preparation is the decisive factor for companies aiming to maximize valuations when market windows open.
While investor caution prevails, Unicapital notes that significant opportunities remain in key growth sectors, including infrastructure, energy, healthcare, education, consumer, financial, and tech-enabled services.
“An IPO isn’t just a financial decision, it’s a transformation of your business,” said Pamela Victoriano, Senior Vice President for Investment Banking at Unicapital, Inc. “By focusing on internal readiness and laying strategic groundwork during market slowdowns, companies can position themselves to seize the moment and maximize valuations as opportunities arise.”
The Five Pillars of IPO Readiness
Unicapital emphasizes that the “real race is won long before the bell rings” and identifies five critical areas—or pillars—that companies must strengthen to be truly IPO-ready and avoid costly delays:
- Class A Audited Financial Statements: Requires at least three consecutive years of transparent, compliant, and reliable financials audited by an SEC-accredited Class A auditor to build crucial investor trust.
- Business Model Scalability and Sector Outlook: Developing a compelling equity story that clearly showcases sustainable competitive advantage and strong growth prospects. Unicapital assists clients in unifying diverse business units or family-owned subsidiaries into one cohesive narrative.
- Regulatory Compliance and Legal Structure: Instituting strong corporate governance, checks and balances systems, and transparent policies. This includes appointing independent directors and establishing committees to meet the standards of public companies.
- Capital Structure and Shareholder Alignment: Streamlining complex or fragmented ownership structures and aligning shareholder agreements and dividend policies to enhance investor confidence and ease due diligence.
- Investor Relations Capabilities: Beyond compliance, proactively building market visibility and engagement through clear and consistent communication of the company’s identity, strategic strengths, and long-term vision.
Building for the Public Company Standard
Unicapital helps clients prepare for life as a PSE-listed entity, noting that the listing is the start of a new, high-standard chapter. To prepare effectively, the firm recommends forming a cross-functional IPO task force with clear accountability for legal, finance, governance, and investor relations at least 12 to 18 months before the target listing.
Unicapital’s support extends beyond listing day through its key group companies:
- Unicapital Inc. provides expert financial advisory, treasury, and fixed income services.
- Unicapital Finance and Investments offers tailored financing and loans via its ULoan brand.
- Unicapital Securities delivers robust stock brokerage solutions through the UTrade online platform.
“Listing is just the beginning,” Victoriano concluded. “What matters is building a legacy that thrives beyond IPO day, and that starts with strong governance, a clear growth story, and the right team.”
Family enterprises account for approximately 80% of Philippine companies, and Unicapital’s holistic approach is designed to guide these businesses through the transformation necessary to balance legacy with robust corporate governance, ensuring lasting market trust and growth.
