SEC urges firms to list

MANILA, Philippines — The Securities and Exchange Commission is urging other companies to list in the stock market to raise capital.

“IPOs propel progress, opportunities and livelihood,” SEC chairperson Emilio Aquino Jr. said during a seminar organized by the Philippine Stock Exchange.

Aquino said that to support the growth of the IPO market, the SEC approved amendments to the PSE listing boards to ensure that the PSE requirements are at par with regional peers and would encourage more companies to list.

The PSE has also amended its listing rules by relaxing the profitability and operating history requirements for listing. The rules also provided a temporary relief clause in considering applications amid the pandemic.

Aside from the easing of the track record and operating history requirements and the COVID-relief clauses, the PSE’s new rules also provided sponsor model provisions for listing applicant companies at the SME Board.

“Under the sponsor model, the applicant’s suitability for listing will be evaluated in the first instance by a listing sponsor accredited by the Exchange and if the applicant meets the suitability for listing criteria, after thorough assessment of its financial condition, business viability, future prospects and management track record among others, listing sponsor shall endorse the listing application to the PSE,” the PSE said.

Capital raised at the PSE for both primary and secondary shares surged to P41.63 billion from P19.24 billion. These share issuances include one IPO, one follow-on offering, two stock rights offerings, and two private placements.

This year, only one company has so far listed in the stock market – Double Dragon’s P14.7 billion DDMP REIT.

During the same forum, Finance Secretary Carlos Dominguez said the Duterte administration continues to introduce measures to deepen the capital markets.

He cited the development of the real estate investment trust (REIT) landscape in the country.

“REITs democratizes wealth for thousands of small investors,” Dominguez said.

REITs are companies that own and operate income-generating real estate assets. These companies include offices, apartment buildings, hotels, warehouses, shopping centers and highways.