PSE reminds non-compliant firms on public float deadline

MANILA, Philippines - The Philippine Stock Exchange reiterated yesterday that listed firms that fail to boost their public ownership level to at least 10 percent will face trading suspension and eventually a delisting of their shares if they remain non-compliant after the six-month grace period.

Erring listed firms have until the end of December this year to meet the mandated 10 percent minimum public float requirement.  Failure to do so will result in a trading freeze for a period of not more than six months or until June 30, 2013.

After the lapse of the six-month suspension period, they will automatically be delisted from the local bourse unless they have by then complied with the requirement.

Once trading is suspended, any transaction on stock trades will no longer enjoy the preferential tax rate of 0.5 percent.

The Bureau of Internal Revenue will instead slap the five- to 10-percent capital gains tax  on stock trades.

Aside from this, companies must still pay listing fees while they are suspended.

The PSE disclosed yesterday there are 25 firms with a minimum public float of less than 10 percent, three of which (First Metro Investment Corp., Eton Properties Phils, and Metro Pacific Tollways) have already filed for voluntary delisting.

Another three firms – Cosmos Bottling Corp., Next Stage and Philcomsat Holdings – are under trading suspension.

Completing the list are Integrated Micro-Electronics, Alphaland, Synergy Grid & Development, Manchester International Holdings Unlimited, LT Group, SPC Power, Vivant, Atok-Big Wedge Co., Mariwasa Siam Holdings, Filinvest Development, Southeast Asia Cement Holdings, PAL Holdings, 2Go Group, Allied Banking Corp., Maybank ATR Kim-Eng Financial, San Miguel Brewery, PNOC Exploration, Globalport 900 and San Miguel Properties.

Securities and Exchange Comission chairperson Teresita J. Herbosa said last week any requests for exemption or deferment of the deadline for listed firm’s compliance with the  rule would have to go through the corporate watchdog.

The minimum public float rule was intended to provide a fair and efficient facility for price discovery and ensure that sufficient liquidity exists.