SINGAPORE — The Philippines‘ Securities and Exchange Commission has introduced new tiered public float requirements to make initial public offerings more flexible and better suited to market conditions, according to a circular dated Tuesday.
- Companies valued at up to 500 million pesos ($8.7 million) must float at least 33%, falling to 25% for firms up to 1 billion pesos, 20% for those up to 50 billion pesos and 15% for larger issuers.
- Exceptionally large companies worth at least 200 billion pesos may list with a float as low as 12%.
- After listing, firms must keep at least 20% or 15% public ownership depending on size, restoring compliance within six months if they fall short.
- Issuers must submit a bookbuilding report within 10 days of the offer’s completion.
- The circular was signed on February 24 and takes effect immediately.
- The country previously required all companies seeking an IPO to have a minimum 20% free float.
($1 = 57.5300 Philippine pesos)
—Reporting by Yantoultra Ngui; Editing by Jan Harvey
