PSE eyes relaxed IPO float rules to attract big listings

MANILA, Philippines – The Philippine Stock Exchange (PSE) is proposing a sweeping overhaul of its minimum public ownership (MPO) rules, including lower public float requirements for large initial public offerings (IPOs), as regulators move to make the local equities market more competitive and attractive to issuers.

In a consultation paper, the PSE said the proposed revisions would align its rules with the Securities and Exchange Commission’s (SEC) Memorandum Circular No. 11, Series of 2026, which introduced a tiered MPO framework based on a company’s expected market capitalization at listing.

Under the proposal, companies planning IPOs with a market capitalization of not more than P500 million would need a minimum public float of 33 percent.

Those valued at over P500 million up to P1 billion would be required to maintain a 25-percent float, subject to a minimum offer size of P165 million.

Meanwhile, firms with expected market capitalization exceeding P1 billion but not over P50 billion would only need a 20-percent float, with a minimum offer size of P250 million.

Companies worth more than P50 billion would be allowed to list with a 15-percent public float, provided they offer at least P10 billion worth of shares to the public.

The exchange is also seeking authority to approve an even lower public float requirement—though not below 12 percent—for exceptionally large companies with expected market capitalization of at least P200 billion.

Such approvals would remain subject to SEC clearance and compliance with safeguards meant to protect investors and ensure sufficient market liquidity.

The SEC, in its circular, said the move was aimed at helping the Philippines stay competitive with regional markets amid weak global IPO activity and tighter investor appetite for large offerings.

Regulators noted that some jurisdictions had already eased listing requirements to encourage more companies to go public.

Post-listing MPO requirements would also depend on market capitalization.

Companies valued at not more than P50 billion would need to maintain a 20-percent public float, while those above P50 billion would only need to keep 15 percent publicly held.

The proposed revisions likewise tighten compliance and reporting rules for listed firms that fall below the required public float threshold.

Companies would be required to immediately disclose any MPO breach, submit a time-bound compliance plan within 10 days, and provide monthly progress reports until compliance is restored.

The PSE also clarified that companies that become noncompliant with MPO rules would face immediate trading suspension for up to six months. Firms that fail to restore compliance after the suspension period could face automatic delisting.

The exchange is accepting comments on the proposed rules until May 20. INQ