House resolution seeks expanded market access for subsidiaries via preferred shares

A LAWMAKER has filed a resolution in the House of Representatives urging the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to review their regulatory framework to allow subsidiaries of listed companies to issue and list preferred shares in the stock market, while ensuring investor protection, transparency, and market integrity.

- By Alexandria Grace C. Magno

House Resolution No. 263, introduced by Albay Rep. Raymond Adrian E. Salceda on Sept. 9, is pending with the Committee on Trade and Industry.

The resolution noted that subsidiaries in sectors such as power generation, renewable energy, water utilities, telecommunications, and infrastructure require expanded financing options.

Allowing them to issue preferred shares would provide additional avenues for raising capital beyond traditional bank loans, it said.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said that in 2022, the PSE established rules allowing companies to conduct initial public offerings and list preferred shares, effectively making this capital-raising option available to subsidiaries of listed firms.