The Securities and Exchange Commission (SEC) is poised to ease the minimum public ownership (MPO) requirement for initial public offerings (IPOs), a move that could clear a major hurdle for the long-anticipated market debut of Globe Fintech Innovations Inc. (Mynt), the operator of e-wallet GCash.

The SEC has circulated a draft memorandum circular outlining a tiered approach to public float requirements, calibrated to the size of the issuer. This change, which comes after lobbying from major potential issuers, appears specifically designed to accommodate large listings like Mynt’s, which had previously expressed concern that the current 20 percent minimum float would result in an offering too large for the local market to absorb.

The new framework introduces a sliding scale, where the MPO percentage decreases as the expected market capitalization upon listing increases.

The first tier, consisting of firms with an expected market capitalization of ₱500 million or less upon listing, will be required to have an initial public float of 33 percent. Tier 2, with a market value of more than ₱500 million to ₱1 billion, will need a public float of 25 percent or ₱165 million.

Tier 3, covering companies worth more than ₱1 billion to ₱50 billion, is subject to a minimum float of 20 percent and at least ₱250 million.

Tier 4, for companies worth over ₱50 billion to ₱150 billion, is subject to a minimum public float of 15 percent or at least ₱10 billion, while the final tier, firms with a market value of more than ₱150 billion, will need a public float of at least 12 percent or ₱22.5 billion.

This tiered system reflects the regulator’s acknowledgement of “market absorptive capacity and prevailing investor risk appetite,” aiming to balance market liquidity with capital formation goals. For Mynt, which is reportedly targeting a valuation of $6 billion to $8 billion, the proposed rules offer an advantage, potentially placing the firm in the top tier and requiring only a 12 percent public float.

Local brokerage Abacus Securities Corp. noted that the proposed 12 percent float for the largest issuers is “less stringent than what we though was feasible for the fintech (GCash).”

Based on a $6 billion to $8 billion equity valuation for Mynt, a 12 percent offering size would range from $720 million to $960 million (approximately ₱42.5 billion to ₱56.6 billion at current exchange rates).

“The lower end of this range would be about 20 percent higher than the capital recently raised by Maynilad Water Services and is thus quite doable for a fintech,” Abacus Securities noted in a report.

Globe Telecom, Mynt’s parent company, has been pushing for a lower MPO, arguing that a 20 percent float on such a massive valuation—which could exceed $1.6 billion—would strain the Philippine capital market, which has struggled with liquidity and weak investor sentiment.

This push for regulatory relief is seen as a “big win for Globe and will also benefit other large IPO candidates going forward,” according to Abacus.

The draft rules also eliminate any requirement for companies in the top two tiers (Tier 4 and 5) to increase their public float percentage in the future, providing certainty to anchor shareholders.

The SEC has opened the draft for public comment as it finalizes the framework that is expected to reshape the IPO landscape for major Philippine companies.

The new rules, however, apply only to future IPOs and will not amend the Philippine Stock Exchange’s existing maintenance rules for previously listed firms, which will still be subject to a 20 percent maintenance requirement.

The rules also provide that if the public ownership of a covered company falls below its prescribed minimum maintaining public ownership at any time after registration and listing, it will be given up to 12 months to increase the public float to the required level.