PSE Eases PPPs Listing and Disclosure Rules

MANILA, Philippines – The Philippine Stock Exchange, Inc. (PSE) eases the track record requirements for public-private partnerships (PPPs) planning to undertake infrastructure projects valued at least P5 billion.

PSE provided supporting rules on listing and disclosure of the firms, which are inclusive of companies seeking to participate in the market’s Main Board. The memorandum dated December 8, 2016 disclosed the minor revisions of PSE, which are also reprimanded by the Securities and Exchange Commission (SEC) when it sanctioned the guidelines in a board meeting on November 8.

Hans B. Sicat, PSE President and Chief Executive Officer, stated yesterday that they are anticipating the new product, particularly now that the government pledged to expedite spending on infrastructure developments. According to him, they remain optimistic that PPPs will take regard the stock exchange market as a field to capitalize.

The revised rules for disclosure and listing assert that PPP contracts valued at least P5 billion are allowed to debut on the equities market. This is applicable for firms that have commenced their commercial run or completed their project phase or construction work. The changes removed the operating history and three-year track record requirements for PSE Main Board hopefuls.

Nonetheless, the supplemental regulations do not allow the listed PPPs’ shareholders to sell, assign, or dispose their stake in any way within 12 months starting from the initial public offering (IPO) date. During the IPO, a secondary offering is also not allowed.

PSE must have the listed PPP company’s business plan, which may encompass new corporate model, fluidity, or completion of a project in at least three years prior the PPP contract’s maturation.

SEC pinpointed that the recast is generally regarding some provisions’ language. Major revisions are composed of delisting standards and guidelines, including conflicts among delisting bases and identifying penalties for firms not rendering the requisite corporate plan.

The fundamentals and process of involuntary delisting have been assumed by PSE in the finalized supplemental provision. The changes specified the equities market’s delisting rules and other important regulations. Furthermore, the country’s bourse also took in fines and consequences for PSE Listing and Disclosure Rules’ breach relative to the lack of a business plan.

Sicat claims that the infrastructure projects are essential in perking up the economy’s productivity and effectiveness across different segments. With the altered rules, they are anticipating for PSE to impart in the continuous growth of the country.

Other Asian markets have been enforcing the infrastructure projects listing, such as Japan Exchange Group, Bursa Malaysia, Stock Exchange of Thailand, Hong Kong Exchanges and Clearing Ltd., and Taiwan Stock Exchange.

About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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