This could pave the way for the listing of anticipated IPOs, such as GCash (via parent company Mynt), which earlier raised concerns about listing rules being “too rigid”. The country’s largest payment giant is eyeing a listing valuation of around $8 billion, InsiderPH had previously reported.
The exemption, earlier pushed by PSE president Ramon Monzon, is designed to support firms and boost market activity despite volatile conditions.
What the SEC said
“After thorough discussions with the Philippine Stock Exchange (PSE), the SEC has allowed, by way of exemptive relief, an initial public float of 15 percent, subject to strict criteria,” the SEC said in a statement on Thursday.
Qualified companies must commit to raising their public float to 20 percent within two years of listing, it added.
SEC still firm that companies must sell 20 percent to the public to list
A larger public float, which refers to shares held by investors outside the company’s major or controlling stockholders, is still the preferred standard.
“Beyond enhancing market liquidity, the minimum public ownership requirement plays a crucial role in improving price discovery and reducing opportunities for price manipulation,” the SEC said.
“The float requirement also seeks to reduce ownership concentration and encourage good corporate governance, ultimately strengthening the Philippine capital market,” it added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
