By Revin Mikhael D. Ochave, Reporter

DOMESTIC initial public offering (IPO) activity is expected to remain limited for the rest of the year amid uncertainties related to tariffs, according to analysts.

Only three initial public offerings are expected to take place this year, which would be half of the Philippine Stock Exchange’s (PSE) target of six, said DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin in a Viber message.

Aside from the lone IPO so far — Cebu-based fuel distributor and retailer Top Line Business Development Corp. in April — Mr. Tin said two more companies could push through with their public listing plans this year, consisting of integrated resort operator Hann Holdings, Inc. and west zone water concessionaire Maynilad Water Services, Inc.

“The tepid IPO pipeline reflects a subdued market environment and lingering uncertainty over the US tariff policies, both of which continue to dampen investor appetite and discourage companies from listing. We believe IPO sentiment will likely remain muted under these conditions,” Mr. Tin said.

United States President Donald J. Trump announced a 19% tariff rate for products from the Philippines following a meeting with President Ferdinand R. Marcos, Jr. in Washington. The tariff rate is marginally lower than the 20% that Mr. Trump threatened to impose, but higher than the 17% announced in April.

“Investor sentiment is being weighed down by global concerns such as the trade tariffs, alongside local worries such as inflation and interest rates,” Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz said in a Viber message.

Despite the cautious outlook, Ms. Estacio-Cruz said there is still some room for optimism.

However, she said the planned IPOs of GCash operator Globe Fintech Innovations, Inc. (Mynt) and the real estate investment trust (REIT) of Sy-led property developer SM Prime Holdings, Inc. are unlikely to happen this year.

“There’s some appetite for IPOs, especially for companies with solid fundamentals or exposure to resilient sectors like gaming, tech, and logistics,” she said.

“Big names like GCash or SM Prime’s REIT might be a stretch this year, but if market conditions hold steady, we could see a few more listings, especially from firms that have been waiting for the right timing,” she added.

Jayniel Carl S. Manuel, Seedbox Securities, Inc. sales and trading department assistant manager, said in a Viber message that the local bourse could see three to four IPOs this year depending on market sentiment.

“Realistically, I think we’ll be lucky to see three to four IPOs push through this year, assuming market sentiment remains cautious,” he said.

“While there’s still investor interest, most are becoming more selective, favoring proven names over riskier bets. Unless a major player like GCash or SM Prime REIT surprises us, I don’t see a significant pickup in IPO filings for the rest of the year,” he added.

On July 17, the Securities and Exchange Commission (SEC) approved the IPO of Hann Holdings, which expects to generate up to P11.43 billion in net proceeds. The company is expected to list its IPO on Sept. 23.

Maynilad postponed its IPO to no later than end-October from its initial listing date of July 17 to accommodate interest from cornerstone investors. The water provider aims to raise up to P37.41 billion in net proceeds.

Last month, the PSE raised its target for capital raising this year to over P186 billion, with some P123.7 billion expected in the second half.

The market operator raised about P62.6 billion in the first six months.

Pangilinan-led conglomerate Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.