More companies meet minimum public float

MANILA, Philippines - Four more listed companies have increased their public float to more than the required level of 10 percent, leaving only 12 firms facing the prospect of trading suspension.

In separate disclosures to the Philippine Stock Exchange, Synergy Grid & Development Philippines Inc. controlled by Henry Sy Jr., Atok Big Wedge Co. Inc., 2Go Group and Vivant Corp. said their majority shareholders sold shares to comply with the Philippine Stock Exchange’s minimum public ownership (MPO) requirement.

The PSE, meanwhile, announced that 12 firms remain non-compliant with the MPO rule, from the 25 companies that were on its list released on Dec.7.

Among the 12 include Alphaland (8.03 percent), Manchester International Holdings Unlimited (6.79 percent), Southeast Asia Cement Holdings (2.41 percent), PAL Holdings (2.3 percent), Allied Bank (1.51 percent), Maybank ATR Kim Eng Financial (0.89 percent), San Miguel Brewery (0.61 percent), PNOC Exploration (0.21 percent), San Miguel Properties (0.06 percent), Philcomsat Holdings (9.6 percent), Cosmos Bottling Corp (1.79 percent) and Nextstage (1.2 percent).

“Selling by principal shareholders of their holdings to the public has resulted in increased compliance with the MPO requirement. This is consistent with the intent of the rule to put more shares in the hands of the investing public,” said Hans B. Sicat, PSE president and chief executive officer.

Erring firms were given up to Dec. 31, 2012 to comply with the rule or face a six-month trading suspension beginning on the first trading day of the new year.

“We have been receiving inquiries from investors on this issue and we continue to urge the investing public to remain watchful of developments on this matter,” Sicat added.

If after June 30, 2013, a listed company remains non-compliant, the listed company’s shares shall be delisted.

The Bureau of Internal Revenue, for its part, reiterated its position  it would impose capital gains tax and a documentary stamp tax (DST) on every sale, barter, exchange or other disposition after Dec. 31,2012 of shares of listed companies whose public float is below 10 percent.

A capital gains tax equivalent to five  percent of the net capital gains amounting to not over P100,000 shall apply while a 10 percent capital gains tax will apply on the excess. 

Also, a DST of P0.75 on each P200  of the par value of the stock will also be applied on the sale.

In contrast, trading of shares of listed and traded at the PSE are subject only to stock transaction tax equivalent to 0.50 percent of the transaction value levied on the seller.– With Neil Jerome Morales