Tuesday April 1 2025
News Source: Global Exchanges
Focus: Listing Rules
Type: General
Country: Philippines
On 27th March 2025, the Securities and Exchange Commission (SEC) announced that it remains firm on the 20% minimum public float requirement for companies applying for an initial public offering (IPO), especially given the value of higher public ownership to market depth and efficiency.
The Rules and Regulations on Minimum Public Ownership (MPO) on Initial Public Offerings (IPOs) is provided under SEC Memorandum Circular No. 13, Series of 2017. The memorandum circular effectively increased the public float to 20% from the 10% requirement at the time.
The float requirement also seeks to reduce ownership concentration and encourage good corporate governance, ultimately strengthening the Philippine capital market.
After thorough discussions with the Philippine Stock Exchange (PSE), the SEC has allowed, by way of exemptive relief, an initial public float of 15%, subject to strict criteria.
Companies may apply for this relief, provided they bridge any gap from the 20% standard within less than 24 months from the listing date and only as deemed necessary by the Commission.
This covers listing applications already filed with and accepted by the Commission and the Exchange. As of March 25th, 2025, the SEC and PSE have yet to receive any application for regulatory relief from any potential IPO applicant.
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