PSE tightens public float rules

MANILA, Philippines — The Philippine Stock Exchange (PSE) has strengthened its minimum public ownership (MPO) rules, imposing immediate trading suspensions and potential delisting for corporations that do not meet the required public float.

In a memorandum, the exchange announced that the SEC has approved the amended MPO rule and revised public ownership guidelines, effective immediately.

READ: PSE refines proposed public float rules

Under the new framework, a company that falls below its required MPO will face immediate suspension from trading for up to six months. During this period, it must restore compliance or file for voluntary delisting.

Companies that do not comply within six months will face automatic delisting. A five-year relisting prohibition will also apply.

The rules also introduced new public float requirements for companies listing after the effectivity of SEC Memorandum Circular No. 11, Series of 2026.

Companies with an expected market capitalization of up to P500 million must have at least 33 percent initial public ownership.

The requirement is 25 percent for those valued at more than P500 million but not exceeding P1 billion, subject to a minimum P165-million offer.

Those valued at more than P1 billion but not exceeding P50 billion must have at least 20 percent public ownership and a minimum P250-million offer.

READ: PSE eyes relaxed IPO float rules to attract big listings

Companies above P50 billion need a 15-percent public float and a minimum P10-billion offer. REITs remain subject to a 33.33-percent requirement.

Exceptionally large issuers with an expected market capitalization of at least P200 billion may qualify for a lower MPO, but this cannot fall below 12 percent and remains subject to regulatory conditions.

A company that breaches its MPO must also submit a compliance plan within 10 days and restore its public float within six months.

The revised guidelines state that only outstanding common shares count towards public float, while preferred and treasury shares do not. /pai