PSE issues add’l listing rules for energy firms

Manila Times.net

By Krista Angela M. Montealegre Reporter

THE Philippine Stock Exchange has approved for public comments the proposed supplemental listing and disclosure requirements for petroleum and renewable energy firms.

In a memorandum, the bourse said the proposed rules were in line with the strategic plan of the Exchange, which starts with the primary objective of listing more companies and securities.

The proposed rules will be integrated in the listing and disclosure rules of the Exchange with any non-compliance subject to the applicable fines and penalties.

“A more robust and active source of funding is envisioned by relaxing the operating history requirement of the Exchange under the second board listing rules of the Exchange to allow the listing of petroleum and RE companies,” the bourse said. The Exchange is soliciting comments until June 30.

The proposal would be applicable to companies applying for initial listing as well as listed firms under the petroleum and renewable energy industries.

On top of the regular documentary requirements of the Exchange covering an initial public offering or a listing by way of introduction, the applicant should submit to the perusal of the Exchange the conditions set in the documentary requirements for petroleum and renewable energy firms.

Among the documentary requirements are a certified true copy of the valid and subsisting service contract duly awarded by the Department of Energy to the consortium where the applicant company belongs to, a technical report by “a competent person or firm” demonstrating that it has at least a portfolio of assets covered by its valid and existing service contracts, and valuations of assets compliant with globally accepted standards.

The supplemental documentary requirements for petroleum and renewable companies would also be applicable to listed companies which will undertake capital-raising activities through the Exchange, such as, but not limited to, follow-on offerings or stock rights offerings.

Under the proposal, the issuer should either be an operator or a co-venturer, which holds adequate interest in a service contract having the same rights and obligations as the other co-venturers, of a valid and subsisting service/operating contract.

The applicant should prove that it has the right to participate actively in the exploration for and/or extraction of natural resources through adequate control over the assets, or through adequate rights, which gives it sufficient influence in decisions over the exploration for and/or extraction of natural resources.

Companies intending to apply its securities for listing in the Exchange should comply with the general listing requirements stipulated in the second board.