MANILA, Philippines – The operator of the stock market in the Philippines, the Philippine Stock Exchange Incorporated, discerns its broker ownership dilution to less than 20 percent.
Jose T. Pardo, PSE chairman, mentioned that this is an improvement that would finally take place after several years which took Carlos Dominguez, finance secretary, and some others to make sure that the entire agreement is finally accomplished.
Last Friday, PSE approved the firm underwriting contract with First Metro Investment Corporation and BDO Capital and Investment Corporation for the management of the stock rights offering (SRO).
According to the CEO and president of PSE, Ramon Monzon, in the agreement, SRO shares would be accepted entirely and would result to reduction of broker proprietorship to below 20 percent. Conformity to the Securities Regulation Code (SRC) regarding the 20 percent broker proprietorship limit has conclusively been accomplished.
11.5 million shares are being offered by the PSE in the SRO to its entire current shareholders as of March 1 at 252 pesos for each share beginning March 12 to March 16.
Broker shareholders, however, would not be permitted to take part in and purchase the shares being offered, said by Monzon. This is to guarantee the entire goal of the stock rights offering, which is to observe the SRC clause that a sole industry cannot possess higher than 20 percent of stock exchange voting rights.
According to Monzon, the path toward observance was an extensive multi-step procedure, which ended with the stock rights ownership. He acknowledged that the procedure took them a while since there was a required and proper process to take.
Monzon also mentioned that the process required the cancellation of idle brokers’ trading status. This took a span of six months as it was necessary to provide idle brokers a proper process. Furthermore, Monzon also reiterated that the PSE was focused and dedicated all throughout the procedure, and that they were pleased with its accomplishment and completion.
He added that they are launching trading and monitoring methods involving the required system automation to make sure that trading limits of broker proprietorship will not be violated from this point onward.
Monzon indicated confidence that the Philippine Stock Exchange would be capable of attending to a further progressive capital market with the actions it is pursuing in the country.
Monzon commented that there are a lot of new things taking place at the exchange and they are full of excitement to start a new period for the sake of the country and public traders.