SEC issues new public ownership framework to boost IPOs

The Securities and Exchange Commission (SEC) has released its planned tiered minimum public ownership framework, aimed at encouraging more companies to pursue listing in the Philippines.

- By RICHMOND MERCURIO

The SEC has issued for public comment its proposed rules and regulations governing the public ownership requirement of companies intending to undertake an initial public offering (IPO) as part of the terms and conditions for registering securities.

The draft memorandum circular proposes a tiered approach to public ownership requirements, which are calibrated according to issuer size and intended to balance multiple policy considerations, including market liquidity, investor protection, capital formation and overall market competitiveness.

“In developing the proposed framework, the commission also considered observations on market absorptive capacity and prevailing investor risk appetite, as well as global and regional shifts in initial public offering activity and evolving approaches in peer markets,” the SEC said.