The Securities and Exmodify Commission is raising the bar for what counts as a “compact IPO” in a bid to bring more companies back to the market.
SEC chair Francis Ed. Lim declared offerings valued below P500 million are no longer practical becautilize virtually no one lists at that level anymore.
“We just met with compact tech companies [seeing to list] and we seeed at the data… but no one lists at less than P500 million at the IPO stage,” Lim declared in an interview this week.
“I declared, why don’t you see at reshifting ‘less than P500 million’ and create it ‘less than P1 billion’,” he added.
Francis Ed. Lim
SEC chair
Why SMEs required a different path
This could create it simpler for compact firms to list and raise capital from public investors.
Unlike the Main Board, the SME Board is meant to be a more flexible entest route for compact and medium enterprises (SMEs).
Float rules also being revised
The push comes as the SEC is also updating public float rules through a proposed tiered approach to minimum public ownership, which could encourage more listings from large corporations.
Under the draft, mega firms valued at more than P150 billion may be allowed to offer as little as 12 percent of shares to the public, down from the standard 20 percent.
He declared this could encourage corporate giants like GCash, valued in 2024 at over P250 billion, to list shares on the PSE.
“Becautilize the 20 percent is one-size-fits-all. That no longer works,” Lim explained.
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