MANILA -- The Philippine Stock Exchange (PSE) has cut the minimum public float requirement for initial public offering (IPO) from 20% to 15%. Officials hope that with this, more companies go public following a tepid listing year in 2024. 

PSE President Ramon Monzon however said the new policy will only be temporary-- lasting for about two years and extendable for another two years. He said he already got the approval of the Securities and Exchange Commission and this policy has been in effect already, but said that they intentionally did not publicize it.

Monzon added that the companies would still have to hit the 20% requirement within 2-3 years after the IPO.

“I said [to SEC] ‘are you ok to reduce the public float to 15? With the condition that we will have the company do a follow-on offering or even a private placement in the next 2-3 years to be able to meet the 5 or 4 or 3% that they did not meet so they can still comply with the 20%. I have gotten the approval from the SEC on that,” Monzon told reporters at the sideline of the inaugural PSE InvestPH conference.

He said some companies think they would be unable to meet the 20% requirement, so with the new policy, Monzon said this can entice more companies to file for an IPO.

“Making easier for companies to make their decisions to go public," he said.

One of the most anticipated potential IPOs this year is GCash. But Globe President Ernest Cu has earlier said they are looking to offer a smaller float saying it will be the best interest of everyone if the PSE reduce the public float.

Monzon told reporters GCash has not yet talked to him yet about the 15% public float. “I keep telling GCash don’t look at a percent, don’t look at 15, don’t look at 12, don’t look at 10. Look at the absolute value.“

Globe reiterates no date, amount yet for GCash IPO

In 2024, capital-raising activity only hit P79 billion from only 3 IPOs, and preferred and follow-on offerings. The PSE earlier said it hopes to hit P120 billion this year.