THE SECURITIES and Exchange Commission (SEC) eased the minimum free float requirements for large initial public offerings (IPO), a move that may pave the way for mega-IPOs in the Philippines.
SEC Memorandum Circular No. 11 introduced a tiered minimum public ownership framework for companies seeking to list shares on the stock exchange.
Under the circular signed by SEC Chairperson Francisco Ed. Lim on Feb. 24, companies with an expected market capitalization of over P50 billion at the time of listing should have a minimum public float of 15%. This is subject to a minimum offer size of P10 billion.
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