EASYCALL Communications Philippines, Inc. (ECP) will be offering more shares to the public in line with the new minimum public ownership (MPO) requirements set by the Securities and Exchange Commission (SEC).
In a disclosure to the stock exchange on Wednesday, the company said its majority shareholder, TDG Ventures, Inc. (TVI), will be reducing its ownership in the company.
“TVI… has expressed its intent to reduce some of its shareholdings through the market in support of ECP’s compliance to the MPO that the SEC may impose,” the company said.
Data from the PSE showed ECP currently has a float of 10.06%, falling short of the 20% floor the required by the corporate regulator.
The SEC last November 2017 released new guidelines for companies looking to list their shares in the Philippine Stock Exchange, doubling the 10% MPO implemented since 2011 to 20%. This move is in line with improving liquidity in the market.
ECP is one of the 68 listed companies the SEC said would have to raise their MPO as a result of the new requirement. The commission is still studying the guidelines on how these firms can go about their re-IPO (initial public offering) or follow-on offerings.
Noncompliance with revised MPO could serve as ground for a possible delisting. For instance, PNOC-Exploration Corp. was involuntarily delisted from the PSE in 2013 after it failed to comply with the 10% MPO the SEC implemented in 2011.
Incorporated in 1989, ECP’s business involves corporate DSL resellership, Internet services, Web business solutions, and server co-location. The company also targets businesses unreachable by fiber optic cables, providing them with IP broadband solutions.
ECP realized a 60% increase in its net income attributable to the parent during the first nine months of 2017 to P5.36 million, following an 8% rise in revenues during the same period to P37.05 million.
Shares in ECP dropped P7.95 or 13.26% to P52 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia
