HONG KONG (BLOOMBERG) – The battle to attract initial public offerings is heating up among Southeast Asian exchanges.

The Philippines is trying to pass a law that would cut taxes on stock transactions in a bid to encourage more IPOs in the country, following hot on the heels of Indonesia’s proposition last week of a similar tax cut.

Under the Philippine proposal, passed by the House of Representatives on Monday (Sept 9), the transaction tax rate on listed stocks will be gradually reduced from 0.6 per cent to 0.1 per cent in 2024 and the tax on interest income will be cut to 15 per cent from 20 per cent.

“We can look forward to the growth of our capital markets as they become competitive with regional peers in terms of friction costs,” said Philippine Stock Exchange President Ramon Monzon. The bill still needs to be passed by the Senate to become law.

Indonesia proposed a similar tax cut targeted at IPOs last week whereby listed firms would enjoy a lower-than-normal 17 per cent corporate-tax rate in the first five years following their IPOs.

The Philippines has only seen one IPO so far this year, although home supplies retailer AllHome Corp is currently meeting with investors for a US$344 million IPO and Metro Pacific Hospital is seeking approval for an IPO that could raise as much as US$1.6 billion, the country’s largest on record.

Still, the size of the markets in the Philippines and Indonesia pales in comparison to larger stock exchanges like Hong Kong. South-east Asian IPOs combined have raised less than half of Hong Kong’s US$10.8 billion in 2019, data compiled by Bloomberg show. Singapore leads South-east Asian countries with a deal value of US$1.67 billion this year, followed by Thailand’s US$720 million.

Singapore and Hong Kong both changed their listing rules last year to allow companies with dual-class share structures to list there as they vied to draw the next big technology IPOs away from New York.


• Shanghai Henlius Biotech

– Hong Kong exchange

– Size up to US$477m

– Taking orders from Sept 11

– Pricing Sept 18

– BofA Merrill Lynch, CICC, Citi, CMBI, Fosun Hani

• Topsports International Holdings

– Hong Kong exchange

– Pre-marketing started Sept 9

– Size about US$1b

– Bank of America, Morgan Stanley

• Lendlease Global Commercial Reit

– Singapore exchange

– Pre-marketing started Sept 2

– Citi among joint bookrunners

• Asset World

– Thailand exchange

– Price: 6 baht

– Size up to US$1.6b

– Property arm of billionaire Charoen Sirivadhanabhakdi

– Listing date Oct 10

• Home Credit

– Hong Kong exchange

– Pre-marketing started Sept 2

– Citi, HSBC, Morgan Stanley

• Bhakti Agung Propertindo

– Jakarta exchange

– Price: 150 rupiah

– Issuance date: Sept 13, Listing date: Sept 16

• Telefast Indonesia (provider of enterprise software solutions)

– Kresna Sekuritas and Trimegah Sekuritas

– Offering expected Sept 9-11

– Expected listing Sept 16

• AllHome (home-furnishing retailer)

– Size up to US$347m

– Started premarketing Sept 5

– Listing date TBA

– Owned by billionaire Manuel Villar