SEC introduces new capital raising initiatives

MANILA, Philippines — Four companies are looking to push through with their initial public offerings (IPO), possibly in the second half of the year, according to Securities and Exchange Commission – Markets and Securities Regulation Department director Vicente Graciano Felizmenio.

The four companies that may push through with their offerings this year are Ovialand, which earlier announced a P2.2-billion IPO, and Enrique Razon’s Prime Infrastructure Capital Inc., which is planning a P33 billion IPO.

No definite timetable, however, has yet been announced by the two companies as of this writing.

SM Prime Holdings Inc.‘s planned P55 billion real estate investment trust listing, originally targeted for the second half of 2023, may also be moved to next year. Felizmenio said SM Prime has not yet filed its registration statement.

However, the SEC has been trying to introduce new capital-raising initiatives and schemes, Felizmenio said.

The SEC, for one, is also trying to provide a “very friendly environment” for power generators and distributors to meet the requirements of the Energy Regulatory Commission (ERC) for them to offer 15 percent of their ownership to the public, Felizmenio said.

“We are trying to come up with a template for the industry,” Felizmenio said.

He said there are around 150 power-related companies that could potentially list in the market.

This is similar to the template crafted by the SEC for hospitals in order to raise as much as P1 billion in capital.

Another capital raising initiative introduced by the SEC is the so-called SEC FARMS or the Securing and Expanding Capital for Farms and Agri-business Related Modernization Schemes.

Under this scheme, agri-based companies can raise up to P500 million per project.

SEC FARMS will streamline the requirements and procedures for agri-based companies registering securities for the purpose of raising capital for agriculture projects.

Applications can be approved within 28 days from filing with the SEC, subject to the guidelines set by the SEC.

“That template provides easy and accessible access to registering their securities for public offering,” Felizmenio said.