InterAksyon.com means BUSINESS
MANILA - The initial public offering of F-I-R-S-T Carbon Solutions Corp. may be scrapped after the Philippine Stock Exchange tightened the rules for listing by small and medium enterprises.
On the sidelines of the 2nd Integrity Initiative Summit, Eduardo Francisco, BDO Capital Investment Corp. president, said the P30-million maiden share sale of F-I-R-S-T Carbon may be shelved until it can comply with the new rules for the planned merger of the second and SME boards of the PSE.
BDO Capital is F-I-R-S-T Carbon's underwriter.
"If the rules are changed and cannot comply, then they cannot list until such time they can be profitable," Francisco said.
F-I-R-S-T Carbon aims to use the proceeds of its IPO to fund its foray into China.
Based on the draft rules, listing candidates must accomplish the following:
- Submit a comprehensive five-year business plan;
- Have at least 500 stockholders;
- Have a three-year minimum operating history;
- Have a market capitalization of at least P250 million; and
- Have a minimum authorized capital of P100 million.
F-I-R-S-T Carbon has been asking the PSE to reconsider its decision to suspend all listings at the second and SME boards pending the completion of the listing rules.
Francisco said the PSE failed to warn the company of the impending suspension when F-I-R-S-T Carbon filed its application to list on the SME Board.
F-I-R-S-T Carbon had said raising capital via the equities market would be more advantageous for the company than simply borrowing funds from banks since listing would give it more visibility. This would then allow the company to get more clients.
InterAksyon.com means BUSINESS
BUSINESS NEWS
