go through Revin Mikhael D. Ochave, reporter
The U.S. Securities and Exchange Commission (SEC) is working on a stratification approach For the least public floating point requirementIts chairman said companies seeking to list on stock exchanges.
SEC Chairman Francisco Ed. Lin said that at present, the current minimum public floating point requirement for companies planning to conduct initial public offerings (IPOs) is a “crystalline” situation, and the stratified system can solve it based on the company’s market value, which can be solved.
“No matter the size of the problem, floating 20% on an IPO is to increase the liquidity of the market, which is one of the basic problems. But I think 20% (float) is “one piece size”. Personally, I don’t think that’s the case.” Mr. Lin said in an interview. broadcast in one news idea Cathy Young’s leader July 25.
Mr Lin said his request for oversight of the SEC specialist to view the layers that will depend on the company’s market value.
“The higher the market cap, the lower the percentage of free floats,” he said.
Mr Lin said the SEC will discuss the proposal internally, but will also receive comments from the Philippine Stock Exchange (PSE) and the public.
“I think it’s done through other communications. Let’s see what happens,” he said.
Mr. Lin said he does not support it Current 20% public floating point requirements.
He added: “I’m very allergic to tax-free relief.”
Mr Lin said the stratified approach makes the rule applicable to all companies, unlike exemptions granted on a case-by-case basis.
“Just modify the rules so that they apply to everyone, rather than applying for a specific company, because once you do, other companies have their own reasons and you should offer tax-free relief.”
In March, the SEC, then led by Chairman Emilio B. Aquino, said companies could apply for an exemption of 20% public floating point rules, “as long as they bridge any gap in the 20% standard in less than 24 months since the listing date and only The Committee considers it necessary. ”
The SEC initially passed relief exemption to allow initial public floats of 15%, but adheres to strict standards.
However, the company regulators “stay firm” with a minimum of 20% public floating point requirement for companies conducting IPOs, citing “higher public ownership value is market depth and EFfintelligent. ”
The SEC’s move is with Globe Telecom, Inc. The long-awaited GCASH IPO controlled by Globe Fintech Innovations (MYNT) will depend on regulators that reduce the required public floating point to 10%-15%.
In 2017, the Commission added the minimum public ownership requirement for companies looking to increase IPOs to 20% from the top 10%.
AP Securities, Inc. Research head Alfred Benjamin R. Garcia said in a Viber message that the tier of systems would be better for companies seeking disclosure.
“It would be better than exemption relief, because the latter feels too much like preference. It also makes more sense because it converts percentages into peso quantity, so the end result is still in line with the goal of ensuring liquidity,” he said.
He added: “At least, Mr. Lin seems to be more concerned about actual shareholder benefits than changing the rules to accommodate certain companies.”
Unicapital Securities, Inc. Research leader Wendy B. Estacio-Cruz said in Viber information that the stratified approach provides a “more practical and inclusive way to encourage IPOs.”
“It provides companies with clearer, more predictable avenues for them to hit the 20% threshold immediately. At the same time, it still supports the goal of improving market liquidity without being too strict,” she said.
“This approach also helps avoid the impression that some companies have bending rules, which can happen when the exemption frequency is too frequent. Overall, it is a fairer and more transparent way to balance attracting lists and building construction. A healthy liquid market,” she added.
PSE’s goal is to have six IPOs this year. But only one company made its debut in the stock market in April – Top Line Business Development Corp., a Cebu-based fuel retailer and issuer.
In addition to GCASH, other companies expected to be disclosed include Maynilad Water Services, Inc. and Integrated Resort Operator Hann Holdings, Inc.
The leader’s PSE index rose 0.04% or 2.95 points to 6,355.69 on Tuesday, while the widespread all-stock index rose 0.1% or 3.76 points to 3,757.20.
Mr. Lin’s interview Thought Leader with Cathy Yang It will be aired on a news channel on July 25 at 9:30 pm.
