THE (PSE) is seeking comments for its proposal to create a new board replacing the existing second and small-and-medium enterprises boards.
Under PSE's proposal, a company applying for listing on the new board must have an authorized capital stock of P100 million or more, of which a minimum of 25% must be subscribed and fully paid.
"With these proposed rules, we are enhancing the investor-protection features of the listing rules for smaller cap companies intending to list on the PSE," said PSE president and chief executive officer Hans B. Sicat.
The PSE is soliciting comments on the proposed rules for the new board.
Other salient features of the proposed rules are:
Track record requirement
The applicant company must have a cumulative pre-tax profit of at least P15 million, excluding non-recurring and extraordinary income and/or loss for the last 3 fiscal years immediately preceding the application for listing. The applicant must also have a minimum pre-tax profit of P3 million for each of the 3 full fiscal years immediately preceding the application for listing. The company must also have an operating history of at least 3 years prior to its application for listing.
Five-year business plan requirement
The applicant needs to demonstrate its stable financial condition and prospects for continuing growth by
submitting, among others, a five-year business plan.
More stringent lock-up requirements
The shares of existing stockholders who beneficially own at least 10% of the issued and outstanding shares of the applicant company will be locked up for a period of two years from listing. Thus, covered shareholders cannot sell or dispose of their securities during the lock-up period. The proposed rules also prohibit a secondary offering during an initial public offering. Lastly, the company is prohibited from changing its primary business purpose for a period of five years from listing. (ABS-CBNnews.com)