BIZ BUZZ: A clearer runway for GCash?
The Philippine Stock Exchange (PSE) has made another round of tweaks to its proposed minimum public ownership (MPO) rules, and while the changes are framed as technical refinements, they could offer another clue on how the bourse intends to handle the country’s biggest initial public offering (IPO) hopefuls.
In its second exposure draft, the PSE clarified that companies allowed to list with a lower-than-usual public float must continue maintaining at least that same approved level after listing. In other words, the MPO requirement is not merely an IPO-day concession but a continuing obligation.
The clarification applies to companies with an expected market capitalization of at least P200 billion, which may qualify for an MPO as low as 12 percent, subject to regulatory approval and other conditions.
The timing is notable.
One of the market’s most closely watched listing candidates, Mynt, the operator of GCash, has already filed for an initial public offering. Based on its registration statement, the company plans to sell shares equivalent to about 12 percent of its enlarged capital and is expected to have a post-listing market capitalization well above the P200-billion threshold, potentially placing it within the scope of the proposed framework if the final rules are adopted.
The PSE’s latest draft does not mention Mynt or any specific company. Nor does it guarantee that any issuer will automatically qualify for a reduced public float. Still, the latest revisions suggest the exchange is moving beyond the broader policy debate and into the finer details of implementation.
With the consultation period now limited to these additional revisions before the rules are finalized, the market may soon have greater clarity on the framework that could govern future blockbuster listings—including, potentially, GCash.
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