PSE lures SMEs to go public—DOF

Published May 17, 2021, 4:11 PM

by Chino S. Leyco

The Philippine Stock Exchange (PSE) wants to lure small and medium enterprises (SMEs) to go public as the local bourse relaxed listing rules for initial public offerings (IPOs), the Department of Finance (DOF) said.

In a statement released by the DOF, it quoted Ramon Monzon, PSE president and chief executive officer as saying that they will step up their marketing campaign to inform SMEs about the relaxed listing rules and the growth opportunities available to them.

In a report to the Capital Market Development Council (CMDC), Monzon said online tools to assess the readiness for the IPO and listing of firms have been posted on the PSE website.

He said this online tools should assist investment houses in gauging the level of preparedness for the listing of companies.

In addition, Monzon said the PSE has partnered with several business organizations and government agencies to boost its marketing campaign on the amended PSE listing rules and broaden the pool of listing candidates.

The listing framework was amended by the PSE and approved by the Securities and Exchange Commission (SEC) earlier this year, to make these relaxed rules at par with the corporate regulations of the other ASEAN-6 economies.

Monzon said the campaign will include a virtual Roundtable Discussion on IPO Listing set on May 25.

The forum, which will have Finance Secretary Carlos G. Dominguez III among the key speakers, will discuss the amended listing rules of the Main and Small, Medium and Emerging Boards of the PSE.

The event will also discuss insights on the advantages and expansion opportunities for SMEs in the stock market, Monzon said.

Co-chaired by Dominguez; lawyer Benedicta Du-Baladad, a former president of the Financial Executives Institute of the Philippines (FINEX); and SEC chairman Emilio Aquino, the CMDC is a coordinating body tasked to facilitate the development of the Philippine capital market.

Dominguez told Monzon to provide the CMDC a progress report that includes the actual number of SMEs listing in the PSE board.

The PSE’s marketing campaign kicked off last April 7 with the conduct of an online information session on the amended listing rules and introduction to the sponsor-driven listings on the Small, Medium and Emerging Board.

Under the sponsor-driven model, the listing application for the company that is unable to comply with the profitability or operating history requirement will be done by a PSE-accredited sponsor, which must be a licensed investment house.

Monzon said around 217 participants from various investment houses, law firms and other organizations took part in the April 7 session.