SEC OKs revision of listing by way of introduction rule

MANILA, Philippines The Philippine Stock Exchange on Monday announced that the Securities and Exchange Commission approved its bid to revise a rule which is seen to encourage more companies to list in the local bourse. In a statement, the PSE said the revision will allow listing by way of introduction for corporations where a public offering of securities is mandated by law or applicable regulation. “The amended rules would encourage more corporations, including those that are registered with the Board of Investments and the Philippine Economic Zone Authority, as well as congressional franchise grantees, among others, to list by way of introduction," the PSE said. “In listing by way of introduction, no capital is required to be raised by the company upon listing. However, the Exchange requires companies who list in compliance with the legal requirement to conduct a public offering and comply with the minimum public ownership requirement within one year from listing," the PSE added. Francis Lim, PSE president and chief executive officer, said the company eyeing to list by way of introduction must first get a clearance from relevant agency stating its non-objection to the applicant company’s listing by way of introduction of its securities. “This initiative hopefully will increase our roster of listed companies and provide our investors more stocks to add in to their portfolios," he added. In case the issuer fails to comply with the post–listing requirement under the revised rules, which is to undertake a public offering and comply with the minimum public ownership requirement of the Exchange within one year from listing, the PSE may grant an extension within which to conduct a public offering if the issuer files a request with the Exchange at least 60 calendar days prior to the lapse of the one-year period. “The issuer may apply for an extension if it is not able to conduct a public offering within one year because of varied reasons such as prevailing market conditions at the time of the filing of the request, or for other pertinent grounds, which the PSE may either approve or deny," Lim said. In the event the issuer fails to conduct a public offering within one year; or apply for extension within 60 days prior to the lapse of the one-year period; or conduct public offering within the additional time granted by the PSE, the PSE shall (1) suspend trading of the issuer’s securities; (2) sanction the issuer by among others, doubling its annual listing maintenance fees; or (3) require the issuer to buy-back its securities and delist the issuer’s securities from the official registry of the PSE, as the Exchange may deem fit under the circumstances. GMANews.TV