SEC chair Francis Ed. Lim said offerings valued below P500 million are no longer practical because virtually no one lists at that level anymore.
“We just met with small tech companies [looking to list] and we looked at the data… but no one lists at less than P500 million at the IPO stage,” Lim said in an interview this week.
“I said, why don’t you look at removing ‘less than P500 million’ and make it ‘less than P1 billion’,” he added.
Why SMEs need a different path
This could make it easier for small firms to list and raise capital from public investors.
Unlike the Main Board, the SME Board is meant to be a more flexible entry route for small and medium enterprises (SMEs).
Float rules also being revised
The push comes as the SEC is also updating public float rules through a proposed tiered approach to minimum public ownership, which could encourage more listings from large corporations.
Under the draft, mega firms valued at more than P150 billion may be allowed to offer as little as 12 percent of shares to the public, down from the standard 20 percent.
He said this could encourage corporate giants like GCash, valued in 2024 at over P250 billion, to list shares on the PSE.
“Because the 20 percent is one-size-fits-all. That no longer works,” Lim explained.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
