SEC mulls 25% public ownership for listed firms

MANILA, Philippines — The Securities and Exchange Commission (SEC) is eyeing to raise the minimum public ownership (MPO) of publicly listed companies to 25 percent but with a longer compliance period, making it at par with other ASEAN countries.

In an interview, SEC commissioner Ephyro Luis Amatong told reporters that they are set to discuss plans of raising the MPO.

“We’re thinking of 20 to 25 percent. Well, I intend to present to the commission,” Amatong said, noting that 25 percent is the standard among ASEAN countries.

The SEC earlier targeted to double the MPO to 20 percent from the present 10 percent, but postponed it last year due to volatile market conditions.

Amatong said they aim to have the MPO raised straight to 25 percent instead of the previous step-by-step increase from an initial 15 percent in the first three years to 20 percent in the next two years.

“We are thinking of the 25 percent goal, but having a longer period instead of three years, five years straight,” Amatong said, adding that companies will be allowed to increase their MPO at their own pace.

As these are all plans and still subject to discussion, Amatong said there is still no target date for the implementation of the new MPO, but emphasized that the sooner the commission is able to discuss it, the better.

“I think in the long term view, the economy is good, inflation is going down, therefore the BSP is cutting rates,” Amatong said.

 “It should be a good time (to implement), except for these recent selloff in the PSE, which is more of a regional, international, external occurrence. No reason why we shouldn’t do it now,” Amatong said.

SEC chairperson Emilio Aquino earlier said the commission is deferring its plans to raise the MPO as it is working on its strategic planning for priorities and key focus areas until 2025.