Home Editors' Picks Public float requirement raised for firms included in PSE indices
Public float requirement raised for firms included in PSE indices
ALL COMPANIES included in the Philippine Stock Exchange (PSE) indices will be required to raise their public float level to 20% by December 2022, the bourse operator said on Thursday.
In the memorandum published on Thursday, the PSE said it is raising to 20% the free float level requirement for companies to be included in the indices, from the current level of 15%. The new rule will be implemented for the index review in December 2022 to give listed firms more time to comply, it added.
This is in line with the PSE’s policy requiring all companies conducting an initial public offering to have at least 20% minimum public ownership.
“Since newly listed companies are mandated to have a 20% free float level, this was a necessary adjustment to our index requirements. Companies that want to consistently be or aspire to become part of the index should make sure that their public float complies, if not exceeds, the minimum level required by the SEC of newly listed companies,” PSE President and CEO Ramon S. Monzon said in a statement.
The PSE also amended its index policy to accommodate the early inclusion of large issuances that “can comply with specific size and liquidity criteria” for its latest review covering June 2021.
Listed firms may also be included in the benchmark PSEi if it ranks 25th or higher in terms of market capitalization among other listed companies. Firms will be bumped off the 30-member index if it ranks 36th or lower in terms of full market capitalization.
“We reviewed the index policies of our peer exchanges and took note of provisions that will make our own policies more consistent with what is practiced globally. The policy revisions we adopted will continue to ensure the quality and integrity of the PSEi and sector indices,” Mr. Monzon said.
The PSE announced the results of its regular review of the benchmark index and sectoral indices covering trading activity for July 2020 to June 2021.
AC Energy Corp. and Converge Information and Communications Technology Solutions, Inc. will be joining the 30-member PSEi effective Aug. 16. They will replace DMCI Holdings, Inc. and Emperador, Inc. on the PSEi.
Rizal Commercial Banking Corp. will be removed from the financials index.
The industrial index will include Alsons Consolidated Resources, Inc. and EEI Corp., replacing Shakey’s Pizza Asia Ventures, Inc., and Phoenix Petroleum Philippines, Inc.
Lopez Holdings Corp. will exit the holding firms index, as AbaCore Capital Holdings, Inc. joins the index.
Arthaland Corp. and D.M. Wenceslao & Associates, Inc. will be taken out of the property index.
Converge and Premiere Horizon Alliance Corp. will be part of the services index.
Atlas Consolidated Mining & Development Corp., Marcventures Holdings, Inc., and Oriental Peninsula Resources Group, Inc. will join the mining and oil index. — Keren Concepcion G. Valmonte