SEC lowers registration fees for public offerings by 30%
To entice more companies to brave the capital markets this year, the Securities and Exchange Commission (SEC) has lowered the registration fees for public offerings by 30 percent and committed to processing applications within 45 days.
The discounted offer covers all registration statement applications by companies seeking to conduct initial public offerings (IPO) or follow-on offerings, as well as those issuing investment contracts, certificates of participation, profit-sharing agreements, bonds and debt securities.
It will also apply to other forms of securities registered by power generation companies and distribution utility companies, as well as real estate developers and managers in relation to rental pool arrangements.
“Our goal for the Philippine capital market is clear—increase market participation to bring it up to par with our peers in the Southeast Asian region,” SEC Chair Francis Lim said in a press statement.
“The SEC will streamline processes and provide discounts or incentives where possible, in order to encourage more businesses to tap the capital market, enabling them to unlock their full growth potential through diverse financing options,” he added.
Streamlined processes
On July 24, the SEC issued Memorandum Circular No. 9, Series of 2025, titled “Further Streamlining the 45-Day Registration Statement Review Process under the Markets and Securities Regulation Department (MSRD) of the SEC and Providing for a Discounted Rate for the Registration Fee.”
The guidelines further streamline the evaluation and approval process for registration statements by, among others, integrating clearance processes across departments of the Commission in the 45-day processing timeline provided under Republic Act No. 8799, or the Securities Regulation Code (SRC).
Agribusiness corporations and hospitals, which are subject to a 28-day processing period, are excluded from the 45-day review timeline.
The 30-percent discount on the assessed registration fees of all registration statement applications will take effect until Dec. 31, 2025.
To start its registration statement application, a company must send digital copies of the necessary documents, including the company’s prospectus, to the MSRD via email for preprocessing review. The MSRD will then present the financial statements to the SEC Office of the General Accountant to determine basic compliance with SRC Revised Rule 68.
The 45-calendar day period shall be reckoned from the date of submission to the MSRD of proof of payment of the first tranche of the registration fee and the full payment of fees pertaining to the clearances.
On or before the 45th day, the MSRD shall present the application before the SEC Commission En Banc. If approved, the MSRD will issue a pre-effective letter stating the conditions to be complied with, after which the Order of Registration and/or Permit to Sell Securities to the Public will be issued.
