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Philippine bourse to relax listing rules to attract firms

Published 09/24/2020, 03:52 PM
Updated 09/24/2020, 04:00 PM

MANILA, Sept 24 (Reuters) - The Philippines' bourse operator
aims to ease requirements on companies planning to go public, in
a bid to boost the number of listed firms and raise the profile
of a bourse that has been Southeast Asia's worst year-to-date
performer.
In a draft memorandum for public comment, the Philippine
Stock Exchange Inc (PSE) PSE.PS said it would remove the
minimum capital requirement of 500 million pesos ($10.3
million), replacing it with a three-year cumulative net income
requirement of 75 million pesos.
For IPO applicants in 2021 and 2022, the requirement on
profitable operations for this year would be scrapped, due to
the impact of the coronavirus pandemic.
Before the virus struck, the Philippines was for years one
of Asia's fastest growing economies, but it has long struggled
to attract companies to its stock market, with just seven
initial public offerings in the past three years.
The revisions would position the "equities market as a
viable capital raising option for companies looking to fund
their recovery measures or pursue their expansionary plans," the
PSE said.
To date, 271 companies were listed in the Philippine bourse,
or just 6.7% of the 4,072 public firms across seven stock
exchanges in Southeast Asia. Its main index .PSI has lost 25%
of its value this year.

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