The Securities and Exchange Commission has approved a set of guidelines specifically for petroleum and renewable energy companies seeking to list on the Philippine Stock Exchange.
The new supplemental listing rules, which will take effect on September 8, are similar to the existing framework for second board listing, but less stringent when it comes to the one-year operating history requirement.
The set of guidelines will enable petroleum and renewable energy firms, especially those in the early stages of exploration and development, to tap capital funding from the market.
“We are grateful for the support of the SEC and the [Department of Energy] in providing a viable listing environment for Philippine companies. This partnership with the government is a collaborative commitment to widen access to capital and align our rules with global standards,” PSE president Hans Sicat on Thursday said in a statement.
The PSE felt the need to come out with industry-specific listing requirements for petroleum and renewable energy firms to minimize the risks involved.
For mining firms, the PSE required applicants to comply with additional requirements on top of the standard guidelines set for all companies seeking to list.
The key requirement for mining companies is its compliance with the Philippine Mineral Reporting Code and its implementing rules and regulations.
In crafting the new rules, the PSE acknowledged that petroleum and renewable energy firms keen on exploring and developing Philippine oil and gas resources were hindered by the rules of the stock exchange, whenever the companies sought additional funds from the local capital market to pursue their activities.
But under the new rules, petroleum and renewable energy companies hoping to debut on the stock exchange need only comply with the general listing requirements in the second board and the supplemental requirements.
The second board usually requires a firm to have an operating history of only a year. But those listed on the PSE’s main board are required to have a three-year track record.
Upon listing on the second board, the applicant must have a market capitalization of at least P250 million.
The same supplemental listing requirements may also apply to existing listed companies that seek to undertake capital-raising activities through the stock exchange.
With the new framework, investors may get to study and understand the nature of the business. The guidelines also serve to protect the investing public from irregularities, the PSE said.
The Philippine Stock Exchange said its collaboration with the energy department and the Securities and Exchange Commission would further enhance their collective effort to provide fair and orderly trading of securities and determine the suitability of securities for listing to protect public interest.
