PSE allows 15% share float for public listings

The Philippine Stock Exchange (PSE) has announced a new rule to help companies that want to go public. Companies can now offer just 15 percent of their shares to the public, instead of the previous minimum of 20 percent. This change comes as the PSE seeks to boost interest in its market, which has seen low trading activity. Ramon Monzon, the PSE president, said the Securities and Exchange Commission approved this change for firms planning to raise at least 5 billion pesos. Monzon explained that this adjustment aims to make it easier for companies to decide on an initial public offering (IPO). Companies choosing the 15 percent option must hold a follow-on offering within two to three years to meet the 20 percent requirement. There are talks that this change may help GCash, an e-wallet platform backed by Ayala. GCash has expressed concern that offering 20 percent of its shares might be too large for the market to absorb. However, if GCash goes ahead with the 15 percent option for its IPO, it would not qualify for the PSE Index, which lists the top 30 companies on the exchange. While this new rule aims to attract more listings, some analysts are worried. They believe lowering the public float requirement might discourage investors from participating in the stock market. They point out that having a 20 percent minimum is considered best practice globally. Critics suggest the PSE should explore other methods to engage investors instead.