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.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
