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Stock Commentary

SEC makes registration easier for power companies that are forced to IPO by law

Merkado Barkada
SEC makes registration easier for power companies that are forced to IPO by law

The SEC issued a notice that simplifies the registration process for power generation companies and distribution utilities [link] that are forced to IPO at least 15% of their shares under the EPIRA law. The SEC also gave an exception to the 20% minimum public float for new IPOs for companies that are forced to list under the EPIRA law, giving these firms the ability to list with just a 15% public float (matching the minimum that must be listed under the law). 


MB bottom-line: Anything that reduces the bureaucracy and keeps the government from being a bottleneck is a positive in my book. I’m not a fan of laws that force companies to conduct public offerings (I don’t see the point of forcing a company to raise money other than to pad the SEC’s and PSE’s stats), and I’m not crazy about any laws that backslide on the PSE’s attempt to raise the minimum public float of the PSE’s companies over time, but I’m not going to let perfect be the enemy of good. Keep up the good work, SEC. More, more, more!

 

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Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.

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