Business World Online
Posted on September 01, 2011 11:43:12 PM
SUPPLEMENTARY RULES easing the listing process for petroleum and renewable energy (RE) companies have been approved by regulators in a bid to attract more investors.
Relaxed listing rules will help oil and renewable energy firms raise capital to develop projects, the Philippine Stock Exchange said. -- BW File Photo
The new rules, which the Philippine Stock Exchange (PSE) said were the first for a specific industry, drop the one-year operating history requirement normally applied to firms seeking join the bourse’s second board.
Compliance with the general and supplementary listing prerequisites will be deemed sufficient, the PSE said, but petroleum and RE firms will also be required to submit a valid service contract with supporting documents, a certification noting the company’s good standing with the Energy department, and a technical report on the prospective resource area.
The new rules -- scheduled to take effect on Sept. 8 -- will also be applied to existing firms looking to engage in additional capital-raising activities, the PSE said.
It said the rules would encourage listings by petroleum and RE firms that have had difficulty raising capital for the exploration and development of energy prospects. Listing in the Philippines, the bourse noted, is currently more challenging than in other countries due to the lack of sector-specific rules.
PSE President and CEO Hans B. Sicat thanked the Securities and Exchange Commission and the Department of Energy for helping craft the new rules, adding that “this partnership with the government is a collaborative commitment to widen access to capital and align our rules with global standards.”
Analyst Grace C. Cerdenia, research head at brokerage firm F. Yap Securities, Inc., said the move to relax listing rules “broadens the market. We cannot just limit our resources to companies with proven track records such as manufacturing firms. We have to disperse the capital flow movement for smaller companies who may have no operating histories.” -- FJGDLF
Compliance with the general and supplementary listing prerequisites will be deemed sufficient, the PSE said, but petroleum and RE firms will also be required to submit a valid service contract with supporting documents, a certification noting the company’s good standing with the Energy department, and a technical report on the prospective resource area.
The new rules -- scheduled to take effect on Sept. 8 -- will also be applied to existing firms looking to engage in additional capital-raising activities, the PSE said.
It said the rules would encourage listings by petroleum and RE firms that have had difficulty raising capital for the exploration and development of energy prospects. Listing in the Philippines, the bourse noted, is currently more challenging than in other countries due to the lack of sector-specific rules.
PSE President and CEO Hans B. Sicat thanked the Securities and Exchange Commission and the Department of Energy for helping craft the new rules, adding that “this partnership with the government is a collaborative commitment to widen access to capital and align our rules with global standards.”
Analyst Grace C. Cerdenia, research head at brokerage firm F. Yap Securities, Inc., said the move to relax listing rules “broadens the market. We cannot just limit our resources to companies with proven track records such as manufacturing firms. We have to disperse the capital flow movement for smaller companies who may have no operating histories.” -- FJGDLF
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