The Philippine Stock Exchange (PSE) is weeding out from its roster publicly listed companies that have long become dormant or failed to comply with listing requirements.
In the last two weeks, the PSE has initiated delisting proceedings against two companies: Primetown Property Group Inc. and the long-defunct Export & Industry Bank (EIB)
According to PSE, EIB will be delisted by July 18 this year, while Primetown will be kicked out of the local bourse by July 25 also this year.
Trading on EIB had been suspended since 2009, while Primetown last traded in the market in 2003.
EIB collapsed in 2012 and was placed under the receivership of the Philippine Deposit Insurance Corp. due to its inability to meet obligations. The bank had insufficient realizable assets to meet its liabilities and was unable to continue business without causing losses to depositors or creditors.
Shareholders attempted to revive Primetown during the term of President Gloria Macapagal-Arroyo, but this did not take off. It has not submitted quarterly or even annual reports and other requirements for years.
Involuntarily delisted
A company that has once been involuntarily delisted from the PSE cannot apply for relisting within a period of five years from the time it was delisted. Furthermore, the directors and executive officers of such company are disqualified from becoming directors or executive officers of another company applying for listing within the same period, counted from the time the application for delisting was approved.
Since the turn of the millennium, 14 companies have been booted out of the PSE.
They are: Melco Resorts & Entertainment (2019); Calata Corp. (2017); Gotesco Land (2016); Marsteel Consolidated (2015); Alphaland Corp. (2014); PNOC Exploration (2013); Banco Filipino (2011); Wise Holdings (2011), Sanitary Ware Manufacturing (2011); Mondragon Philippines (2011); Landoil Resources (2004); Reynold Philippines (2003), Nasipit Lumber (2003) and San Carlos Milling (2001).