Правки правил биржи Филиппин упростят выход малых предприятий на IPO

By Alexandria Grace C. Magno, Reporter PROPOSED changes to the Philippine Stock Exchange, Inc.’s (PSE) sponsor rules could make initial public offerings (IPOs) more feasible for small and medium enterprises (SMEs) by lowering costs for sponsors and widening the pool of advisers willing to bring companies to market, analysts said. Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said the proposed revisions could address the high costs and compliance requirements that may discourage firms from participating in the SME sponsor program. “The proposal would substantially lower the initial sponsor accreditation fee from P3.5 million to P50,000, introduce a P250,000 fee for each company endorsed, remove the professional indemnity insurance requirement, and allow firms without the prescribed firm-level track record to qualify if at least two key officers have sufficient initial public offering or corporate-finance experience,” he said in a Viber message. The lower upfront cost could make it more viable for financial institutions and corporate-finance advisers to enter the sponsor market, while the per-company fee would tie a larger portion of the cost to actual listing activity, Mr. Arce said. He also cited proposed changes to a sponsor’s post-listing role that could reduce the long-term commitment required under the existing framework. Under the proposal, the PSE would no longer require the original sponsor to remain with a listed company for at least three full fiscal years. Instead, the company would be required to retain an accredited compliance adviser, while the original sponsor could decide whether to continue in that capacity. Mr. Arce said the proposed removal of the 5% post-listing ownership limit would also give sponsors greater flexibility to retain an interest in companies they help bring to market. For SMEs, the changes could broaden the pool of potential sponsors and give companies greater access to advisers with experience in public offerings, he said. “More sponsors could mean greater competition for mandates, potentially lowering transaction friction and giving smaller companies more access to experienced advisers,” Mr. Arce said. However, he said the proposed changes would not necessarily lead to a wave of new listings, as companies would still have to demonstrate viable business models, sound governance, adequate disclosure, and sufficient investor demand. “Regulatory reform alone is unlikely to produce a surge in SME listings,” he said. Mr. Arce said another challenge would be ensuring sufficient investor interest and secondary-market liquidity after an SME completes an IPO. “If SME shares trade very thinly after IPO, companies may continue to see private capital, bank financing or strategic investors as more attractive alternatives,” he said. For investors, the easing of entry requirements for sponsors would have to be accompanied by effective oversight, Mr. Arce said. “Notably, it would remove the existing safe-harbor language that allows a sponsor to avoid responsibility for false, inaccurate or misleading information by demonstrating good faith and reasonable due diligence,” he said. The PSE would also conduct annual reviews of sponsors and could take regulatory action against those that fail to endorse at least one company within five years, subject to an exception for prospective issuers rejected after proper due diligence, according to Mr. Arce. Liam Limbo, investment analyst at F. Yap Securities, Inc., said lowering costs and easing some sponsorship requirements could make IPOs more feasible for SMEs. “We view this as being aimed at easing compliance requirements in IPOs, which remains a large barrier keeping SME firms from listing publicly,” he said in a Viber message. “The lower upfront cost and added flexibility with the sponsorship requirements will lead to SMEs considering IPO listings as more feasible options.” Mr. Limbo said a larger number of SME listings could give investors access to more companies and business models and potentially encourage greater retail participation in the stock market. “Should this lead to more SMEs listing, it would provide investors with more investment options: new firms that can introduce fresh business models,” he said. “Ultimately, this would have the potential to boost interest among retail investors towards the stock market.”