(If you want a quick guide for beginners how to start investing in the Philippine stock market, you can download your free ebook here.)
An interesting firm that is set to make its IPO debut is the technology company AudioWav Media Inc. or WAV, a pioneer in multi-sensory branding which maintains strategic presence in the Philippines’ top retail and hospitality establishments, including shopping malls, retail stores, restaurant and fast-food chains and telecommunication firms.
WAV has been a trusted partner of industry giants – Ayala Malls, Jollibee Foods Corp., Globe Telecom Inc, Mercury Drug and Gokongwei-led companies – and continues to expand across Southeast Asia, like in Singapore. For 13 years, WAV has been quietly equipping major businesses in the Philippines and abroad with a curated mix of audio, visuals, and scents to create a retail space that embodies their brand’s personality.
WAV has a very interesting business model. To craft a customized atmosphere, WAV makes use of cutting-edge technology and devices such as custom-branded music and messaging, multi-directional speakers, digital signage and screens, custom scenting and diffusers, and their patented custom media player. WAV is not entirely a new player but it’s unique business model makes it one IPO to keep your eyes on.
According to Philippine Stock Exchange (PSE) president Hans Sicat,
the PSE is looking at up to eight IPOs this year, including WAV.
Sicat added that the environment is likely better this year with global risks reduced as compared to 2016. The International Monetary Fund (IMF) also expects the Philippines to record the fastest economic growth in the region over the next two years. Foreign investment funds, including Japanese small investors, have also began coming to the Philippines and recognizing the investment opportunities. With the “build build build” focus of the government, sustaining our growing economy would mean more earnings for corporations and ultimately to its investors.
Anyone who wants to participate in IPOs can do so with the Local Small Investors program (LSIP) of PSE, or subscribe through their partner brokers.
It’s always interesting to see how the market receives an IPO especially on its debut in the stock exchange. It’s important to remember, though, that since IPO is really an investment at birth, doing due diligence is always in order.
IPOs are the birthplace of public stocks. It is the first time a company offers its stock to the investing public. Once the IPO is launched, the offered shares become available for public trading just like other stocks. Because of this, an IPO is also referred to as “going public.”
There are two general types of IPOs.
The first one, called the Start-up IPO, aims to enlist a company that didn’t exist before the IPO. It all starts with a good idea that is then backed by an investment banker who thinks the idea is worth the risk and then goes on to do an IPO to raise funds, hoping that like-minded investors believe in the idea as well.
The second type, which is the more common one, involves a private company that is already established and decides to go public. This one is less risky since there’s already a proven business with transparent historical earnings performance. This is clearly a safer bet than a start-up IPO.
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