Listing rules for oil, RE approved

business mirror

THURSDAY, 01 SEPTEMBER 2011 22:30 MIGUEL CAMUS / REPORTER

THE Securities and Exchange Commission (SEC) has approved the supplemental-listing rules of the Philippine Stock Exchange (PSE) for petroleum and renewable-energy (RE) firms, a move seen to encourage listings at the bourse.

The PSE said the new rules, which are posted on its web site, will be effective starting September 8. The supplemental rules are a result of a collaboration initiated by the PSE with the Department of Energy (DOE) and the SEC.

A key feature is the requirements’ aim to relax the one-year operating- history requirement under the second board listing rules of the exchange to allow the listing of petroleum and renewable-energy companies.

The listing at the PSE for these types of companies has been described as “more challenging” compared to Hong Kong, Singapore, Australia and Canada.

This year only Philex Petroleum Corp., a unit of Philex Mining Corp., has made plans to list on the local bourse.

“We are grateful for the support of the SEC and the DOE in providing a viable listing environment for Philippine companies. This partnership with the government is a collaborative commitment to widen access to capital and align our rules with global standards,” PSE President and CEO Hans Sicat said in a statement.

Before the new rules, the bourse did not have industry-specific listing requirements for petroleum and renewable-energy companies, which fully capture the business and the risks involved in the operations of such companies.

Applicant mining companies must now comply with additional requirements, on top of the standard ones applicable to all listing applicant companies. The key requirement for mining companies is its compliance with the Philippine Mineral Reporting Code and its implementing rules.

In crafting the new rules, the PSE noted that petroleum and renewable-energy firms interested in the exploration and development of Philippine oil-and-gas resources and renewable-energy technologies had been hindered by the rules of the exchange in obtaining additional funds from the local capital market for the exploration and development of such energy-based resources.

The PSE said petroleum and renewable-energy companies that intend to list on the bourse should comply with the general listing requirements in the second board listing rules together with the supplemental requirements.

For companies that fail to meet the operating history requirement, the compliance with the general listing and the supplemental requirements would be deemed acceptable. The PSE said supplemental listing requirements would also be applicable to existing listed companies that seek to undertake capital-raising activities through the exchange.

The supplemental disclosure requirements also aim to provide investors with meaningful and comprehensive understanding of petroleum and renewable-energy resources and reserves, and to protect the investing public from irregular and unregulated reports concerning the declaration of potential, possible or probable petroleum and renewable-energy resources and reserves.