PSE urges savings banks, GOCCs to list shares

The Philippine Stock Exchange (PSE) is urging savings banks and the profitable government-owned or controlled corporations (GOCCs) to list their shares on the local bourse in line with efforts to improve market breadth and liquidity.

PSE president Francis Lim said the exchange wants to see the listing of more banks at the exchange to provide the public with more investment options.

He, however, expressed concern that the charter of GOCCs would deter these firms from listing on the exchange. In order for these firms to list, they might have to amend their charter, he pointed out.

To encourage more firms to list, the exchange is also considering relaxing its listing rules for the second and small and medium enterprise (SME) boards.

The PSE is particularly keen on amending the track record and market capitalization requirements of the listing rules.

Under existing rules, second board issuers must have a market capitalization of at least P250 million and an operating history of at least one year prior to listing.

Companies intending to list on the SME board, on the other hand, must have been operational for at least one year with positive net operating income during the last financial year. They must have a minimum authorized capital of P100 million and net tangible assets of at least P5 million.

The PSE and the Knowledge Institute, the education arm of accounting firm Sycip Gorres Velayo Co., earlier signed an agreement aimed at encouraging more companies to list on the exchange to lure more companies to go public.

The Knowledge Institute has sent out letters to around 200 client-companies, mostly business process outsourcing firms, inviting them to attend its seminar on listing at the exchange.

The PSE has stepped up efforts to convince big profitable companies to go public in order to provide the investing public with an expanded menu of stocks.

Last year, the exchange entered into a memorandum of agreement with the Board of Investments that binds them to implement the provisions of a law requiring companies registered with the BOI to offer at least 10 percent of their shares to the public within 10 years of registration.

Only one BOI-registered company (Alliance Tuna International Inc.) has so far listed on the exchange this year, the third firm to go public after First Generation Corp., the holding company for all power generation assets of the Lopez family; and online brokerage house Citiseconline.com.