SEC OKs new PSE rules for listing of energy firms

The Securities and Exchange Commission (SEC) has given its consent to the proposed supplemental listing and disclosure requirements of the Philippine Stock Exchange (PSE) for petroleum and renewable energy companies, the PSE said in a statement on Friday. The supplemental rules are a result of a collaboration initiated by the Exchange with the Department of Energy and the SEC. The supplemental listing requirements aim to relax the one-year operating history requirement under the Second Board Listing Rules of the Exchange to allow the listing of petroleum and renewable energy companies. “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," said Hans B. Sicat, PSE president and chief executive officer. 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. For applicant mining companies, the Exchange required the mining company to comply with additional requirements on top of the standard requirements applicable to all listing applicant 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 new rules, the PSE noted that petroleum and renewable energy firms interested to participate in the exploration and development of Philippine oil and gas resources and renewable energy technologies were hindered by the rules of the Exchange in obtaining additional funds from the local capital market for the exploration and development of such energy based resources. The listing of a petroleum or a renewable energy company is more challenging in the Philippines than in Hong Kong, Singapore, Australia and Canada. Under the new rules, petroleum and renewable energy companies that intend to list on the bourse should comply with the general listing requirements in the Second Board Listing Rules (Article III Part E of the Revised Listing Rules of the Exchange) together with the supplemental requirements. For companies that fail to meet the operating history requirement under the Second Board Listing Rules, the compliance with the general listing and the supplemental requirements will be deemed acceptable to the said operating history requirement. Further, such supplemental listing requirements will also be applicable to existing listed companies which seek to undertake capital-raising activities through the Exchange. Further, the supplemental disclosure requirements 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 supplemental requirements, which will be effective starting September 8, are posted on the PSE website. -- CMA/OMG, GMA News