{"id":10332,"date":"2025-03-28T02:59:33","date_gmt":"2025-03-28T01:59:33","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=10332"},"modified":"2025-03-28T02:59:33","modified_gmt":"2025-03-28T01:59:33","slug":"sec-adjusts-public-float-requirements-for-certain-ipos","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/28\/sec-adjusts-public-float-requirements-for-certain-ipos\/","title":{"rendered":"SEC Adjusts Public Float Requirements for Certain IPOs"},"content":{"rendered":"\n

By Revin Mikhael D. Ochave, <\/b>Reporter<\/i><\/span><\/p>\n

THE SECURITIES and Exchange Com<\/span>mission (SEC) is permitting an initial public float of 15% for certain companies aiming <\/span>to enter the public market, but adhering to \u201cstringent\u201d standards.<\/p>\n

\u201cAfter extensive discussions with the Philippine Stock Exchange (PSE), the SEC has permitted, through exemptive relief, an initial public float of 15%, contingent on strict standards,\u201d the regulatory body stated in an announcement on Thursday.<\/p>\n

Nevertheless, the SEC asserted it \u201cremained steadfast\u201d on the 20% minimum public float condition for firms intending to conduct an initial public offering (IPO), \u201cparticularly considering the importance of increased public ownership for market depth and ef<\/span>f<\/span>iciency.\u201d<\/span><\/p>\n

According to its Memorandum Circular No. 13 issued in 2017, the SEC elevated the minimum public ownership (MPO) standard for IPO-targeted companies to 20% from the prior 10%.<\/p>\n

The SEC indicated that firms can seek exemptive relief from this regulation \u201cif they can fill any gap from the 20% target within less than 24 months from the listing date and only as determined necessary by the commission.\u201d<\/p>\n

\u201cThis applies to listing applications that have already been submitted and accepted by the SEC and the PSE,\u201d it noted.<\/p>\n

As of March 25, there have been no applications for regulatory relief from prospective IPO candidates with the SEC and PSE. <\/p>\n

The SEC released this statement following comments from PSE President and Chief Executive Of<\/span>f<\/span>icer (CEO) Ramon S. Monzon last week, stating that the regulator was amenable to lowering the public float requirement to stimulate more IPOs. <\/span><\/p>\n

Reducing the public float requirement could facilitate the long-anticipated IPO of GCash, managed by Globe Fintech Innovations (Mynt).<\/span><\/p>\n

Prior news reports cited Globe Telecom, Inc. President and CEO and Mynt Chairman Ernest Cu, mentioning that the GCash IPO’s progress will partly rely on regulators allowing the public float to be lowered to 10-15% for larger offerings. <\/p>\n

On Thursday, the SEC emphasized that the 20% MPO requirement for IPO-bound companies \u201cis essential for enhancing price discovery and diminishing risks for price manipulation.\u201d <\/span><\/p>\n

\u201cThe float requirement also aims to lessen ownership concentration and promote sound corporate governance, ultimately contributing to a healthy capital market,\u201d it added.<\/p>\n

The SEC reiterated its commitment to maintaining the capital market \u201cequitable, transparent, and eff<\/span>icient.\u201d<\/p>\n

\u201cWhile the commission welcomes new listings, it maintains rigorous regulatory standards that protect the integrity and long-term stability of both the Philippine capital market and the broader economy,\u201d it stated.<\/p>\n

In response to requests for expert insight, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia expressed that this new regulation would incentivize larger firms to proceed with their IPO strategies.<\/p>\n

\u201cWe believe this new regulation would motivate larger companies to go public, especially if they have delayed their offerings due to market circumstances,\u201d he stated in a Viber message.<\/p>\n

\u201cIf you notice, we have primarily witnessed smaller IPOs in recent times because the market hasn\u2019t been liquid enough to accommodate significant offerings,\u201d he added.<\/p>\n

Conversely, COL Financial Group, Inc. Chief Equity Strategist April Lynn C. Lee-Tan commented via Viber that this action may have adverse effects for companies planning their IPOs.<\/p>\n

\u201cRaising the float to 20% in a maximum of two years might be unfavorably perceived by companies due to the risk that market conditions could remain weak and the share price might fall below the IPO price by then,\u201d she remarked.<\/p>\n

\u201cHowever, if fewer shares need to be sold, there\u2019s a greater possibility of selling your stocks at a higher valuation for companies intending to launch an IPO,\u201d she added.<\/p>\n

Unicapital Securities, Inc. Research Head Wendy B. Estacio-Cruz stated that the SEC’s confirmation of its commitment to the 20% MPO would motivate firms to adhere to the rule.<\/p>\n

\u201cYet from my perspective, the SEC is also open to granting relief to facilitate large companies moving forward with their proposed IPOs, contingent upon assessment and compliance with the set criteria,\u201d she stated in a Viber message. <\/span><\/p>\n

The PSE anticipates six IPOs this year. However, no public listing has taken place yet this year.<\/p>\n

Numerous companies are projected to initiate their IPOs this year, including water concessionaire Maynilad Water Services, Inc. and Cebu-based fuel retailer Top Line Business Development Corp.<\/span><\/p>\n


\n
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By Revin Mikhael D. Ochave, Reporter THE SECURITIES and Exchange Commission (SEC) is permitting an initial public float of 15% for certain companies aiming to enter the public market, but adhering to \u201cstringent\u201d standards. \u201cAfter extensive discussions with the Philippine Stock Exchange (PSE), the SEC has permitted, through exemptive relief, an initial public float of<\/p>\n","protected":false},"author":3,"featured_media":10333,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[1880],"class_list":["post-10332","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy-and-markets","tag-return-a-list-of-comma-separated-tags-from-this-title-sec-lowers-public-float-for-some-ipos"],"yoast_head":"\nSEC Adjusts Public Float Requirements for Certain IPOs - WSJ-Crypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/28\/sec-adjusts-public-float-requirements-for-certain-ipos\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Adjusts Public Float Requirements for Certain IPOs - WSJ-Crypto\" \/>\n<meta property=\"og:description\" content=\"By Revin Mikhael D. 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