SEC proposes tiered minimum public ownership for IPOs

The Securities and Exchange Commission (SEC) has proposed a tiered minimum public ownership framework, open for public comment until December 23, to encourage more companies to conduct Initial Public Offerings (IPOs) in the Philippines.

This framework aims to balance market liquidity, investor protection, capital formation, and market competitiveness by calibrating requirements based on issuer size, moving away from the current 'one-size-fits-all' 20% rule.

Companies planning to list on an exchange will be assigned to one of five tiers based on their expected market value at listing.

The SEC has also taken into account market absorptive capacity, investor risk appetite, and global trends in IPO activity when developing these proposed rules.