Concerned that there may be few takers for PSE shares once they are listed on the exchange, the SEC suggested that the bourse increase its stake in the exchange by acquiring more shares. "The PSE can increase its shares and later on sell them to other people," SEC Chairperson Lilia R. Bautista said.
Upon demutualization or through the conversion of PSE to a stock corporation on Aug. 8, 2001, all 184 registered brokers became trading participants each acquiring 50,000 shares in 2002.
The first sale of trading right and shares was in 2001 for P25 million, followed a year later by another for P12.05 million.
Bautista said several brokers have already signified their intention to unload their respective interests once the PSE lists its shares. The PSE was given until the end of the year to list its shares on the exchange.
Under the src, "once the exchange is organized as a stock corporation, no industry or business group may beneficially own or control more than 20 percent of the voting rights of the exchange."
The 20 percent ownership cap was brought about by the need to maintain fair play and to avoid conflicts of interest in the management of the exchange.
To comply with the ownership cap under the src, the PSE is required to offer its shares to other group of investors.
In preparation for its full demutualization, the PSE has appointed ATR Kim-Eng Capital Partners Inc. as financial adviser for the planned listing of its shares.
Shareholders of the demutualized PSE prefer the introductory listing of the whole exchange rather than spinning off its clearing and settlement units and real estate assets.
The PSE has three subsidiaries – Securities Clearing Corp. of the Philippines, Philippine Central Depository and Philippine Stock Exchange Foundation Inc. and some property assets.