Public ownership of 30 listed firms still below minimum

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MANILA, Philippines - Thirty listed firms still fall below the mandated 10 percent minimum public ownership rule, according to the Philippine Stock Exchange (PSE).

"We believe all remaining companies, which are less than 30 now, will be complying and we think the best indication is they have hired bankers or expensive lawyers to do their public offering," Hans Sicat, PSEI president and chief executive officer, said on the sidelines of the Institute of Corporate Directors roundtable on Thursday.

Capital raised at the local bourse would double to P198 billion this year from P107 billion last year should the remaining non-compliant companies move to raise their public float.

Firms that failed to comply with the minimum public float rule by December 31, 2011 have until January 1, 2013 to meet the prescribed public ownership without facing penalties.

A six-month suspension awaits companies that don’t comply with the public float rule. Failure to address the matter during the six-month suspension period would merit delisting.

The Bureau of Internal Revenue also would impose a five- to 10-percent capital gains tax on stock transactions of non-compliant firms, or much higher than the current preferential rate of one-half of one percent.

The move to reinstate the minimum public float requirement is part of the local bourse's thrust to create a competitive and vibrant market by increasing liquidity, improving corporate governance and strengthening organizational foundation.

The local bourse may soon require companies planning to list on the second board -which is reserved for smaller firms with superior growth potential and a market capitalization of at least P250 million - to only sell primary shares.

"The issue is when you have a junior company, [you want] to use the proceeds to grow. You want to make sure that is what happens. It's part of discipline," Sicat said.

Calata Corp. was supposed to sell 72.02 million shares, consisting of 36.012 million primary shares and the same number of secondary shares, at up to P7.50 apiece in an initial public offering slated this month.

The PSE recently approved the Bulacan-based agricultural distributor's share sale, but the secondary portion of its offering was scrapped, translating to an offer size of up to P270 million.

Calata is set to become the third company to go public this year after GT Capital Holdings Inc. and East West Banking Corp.

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