MANILA – In order to launch an initial public offering within a given timeframe, the Philippine Stock Exchanges has drafted new requirements for companies.
The new rules involve listing through the backdoor or by including new business into an existing publicly listed company.
Recent surge in trades was in anticipation of a foreseen tightening of backdoor listing rules, a source told the Philippine Daily Inquirer.
Refinements to the backdoor listing rules has also been drafted in order for companies to be introduced properly to the public, also according to the source.
This will be done by requiring companies to submit a prospectus and information memorandum.
The source also revealed that revealed that retail investors lacking enough knowledge on the companies’ backdoor listing are not included in the follow-on offering deals.
Sale of shares to chosen institutional investors are usually included in the said deals.
Meanwhile, a comprehensive corporate disclosure is set as a requirement for backdoor-listed companies for the purpose of discussing major ownership changes.