SEC clears PSE's proposed rules on energy firms' listing

By Zinnia B. Dela PeÑa (The Philippine Star) Updated September 02, 2011 12:00 AM


MANILA, Philippines - The Securities and Exchange Commission (SEC) has cleared the Philippine Stock Exchange’s proposed supplemental listing and disclosure requirements for petroleum and renewable energy companies.


The approved rules aim to relax the one-year operating history requirement under the second board listing rules to allow more petroleum and renewable energy companies to list on the bourse.


The supplemental rules are a result of a collaboration initiated by the PSE with the Department of Energy and the SEC.


“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 chief executive officer Hans B. Sicat said.


Prior to the new rules, the exchange 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.


The key requirement for mining companies is its compliance with the Philippine Mineral Reporting Code and its implementing rules and regulations.


In crafting the rules, the PSE noted that petroleum and renewable energy firms interested to list on the bourse face certain hurdles with respect to obtaining funds from the stock market.


Local investors, both small and institutional, are also limited in their ability to invest in and help develop natural resources in the Philippines because of the lack of listed natural resources companies on the exchange.


Accroding to the PSE, the listing of a petroleum or a renewable energy company is more challenging in the Philippines than in Hong Kong, Singapore, Australia and Canada.


The supplemental listing requirements will also be applicable to existing listed companies which seek to undertake capital-raising activities through the exchange.


The rules 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 declaration of potential, possible or probable petroleum and renewable energy resources and reserves.


“The collaboration with the DOE and the SEC will further enhance the exchanges’ main thrust to provide a fair, orderly and efficient market for the trading of securities and to determine the suitability of securities for listing for the protection of the public interest,” the PSE said.