SEC Chairperson Emilio B. Aquino — AMLC.GOV.PH

THE Securities and Exchange Commission (SEC) said it has not received any formal proposal to reduce the minimum public ownership (MPO) requirement for large initial public offerings (IPOs). 

“It didn’t reach us. Once it reaches us, that’s the time we will tell you. But for now, there’s none,” SEC Chairperson Emilio B. Aquino told reporters on the sidelines of the 2025 International Tax and Investment Conference hosted by the Asian Consulting Group in Pasay City on Wednesday. 

“The issuer has to apply. But so far, there’s no filing yet… They should go to us first,” he added.

Mr. Aquino said any proposal to amend the MPO rule would undergo regulatory review, with the SEC evaluating multiple factors within a 45-day period before reaching a decision. 

“There are different regulatory objectives in mind. One is to promote. As much as possible, we want to get more listings. But at the same time, we should also balance protection. There are many factors that we have to consider,” he said. 

Mr. Aquino’s statement follows Philippine Stock Exchange (PSE) President and Chief Executive Officer Ramon S. Monzon’s announcement last week that the exchange had secured SEC approval to lower the MPO threshold, aiming to encourage more companies to proceed with public listings. 

According to Mr. Monzon, IPO-bound companies may initially comply with a 15% public float, provided they commit to a follow-on offering or private placement within two to three years to meet the 20% MPO requirement. 

He said the adjustment is temporary and will be reassessed. 

“We have a two-year window, then if that’s not working, we will extend it for another two years,” Mr. Monzon said.

The PSE’s initiative aligns with GCash’s planned IPO later this year. GCash is controlled by Globe Fintech Innovations (Mynt).

Globe Telecom, Inc. President and Chief Executive Officer and Mynt Chairman Ernest L. Cu previously said the GCash IPO would partly depend on regulators allowing a reduced public float of 10-15% for larger offerings. He added that the IPO could target an $8-billion valuation. 

Mr. Monzon said GCash qualifies for the exemption as its IPO exceeds the P5-billion threshold.

The PSE anticipates six IPOs in 2025, though no listings have taken place so far.

Among the expected IPOs are Cebu-based fuel retailer Top Line Business Development Corp., GCash, and Pangilinan-led water concessionaire Maynilad Water Services, Inc. — Revin Mikhael D. Ochave