THE Securities and Exchange Commission (SEC) said it is possible to lower the 20% minimum public ownership (MPO) requirement for public listings to accommodate the planned stock market debut of mobile wallet platform GCash.
SEC Commissioner McJill Bryant T. Fernandez said GCash must apply for exemptive relief with the corporate regulator.
“Should there be any lowering of the 20% (MPO rule), then that would still be an exemptive relief application. It is within the SEC’s power…” he told reporters on the sidelines of a recent listing event in Makati City.
“At the end of the day, we have to look at market conditions. We have to check exactly what they’re going to propose. But we have yet to see. The size of the offer would be considered. At the end of the day, we want a successful listing,” he added.
However, Mr. Fernandez said GCash has not yet submitted an application to the SEC.
“Formally, we have not yet received anything from GCash. We haven’t even conversed, formally or informally, about this. I’m aware that they’ve reached out to the Philippine Stock Exchange (PSE),” Mr. Fernandez said.
“From our end, we’re looking forward to this listing by GCash,” he added.
Globe Telecom, Inc. recently said it is seeking regulatory relief from the PSE and the SEC on the 20% MPO rule for the planned GCash initial public offering (IPO).
G-Xchange, Inc., which operates GCash, is a wholly owned subsidiary of Globe Fintech Innovations, Inc. (Mynt).
Globe President and Chief Executive Officer Ernest L. Cu recently said the GCash IPO could target an $8-billion valuation and might happen by year-end.
He added that the timeline will depend on the PSE and SEC’s decision on whether to lower the MPO rule to 10%-15% from 20%.
PSE President Ramon S. Monzon said in January that the market operator, along with the SEC, is evaluating the possibility of reducing the 20% public float requirement. The PSE aims to have six IPOs this year. — Revin Mikhael D. Ochave
