The Securities and Exchange Commission (SEC) plans to launch next year new rules that will make initial public offerings (IPOs) easier for power generation companies and distribution utilities.
SEC commissioner Javey Paul Francisco said in an interview at the sidelines of Economic Journalists Association of the Philippines-Aboitiz Power forum on Friday the SEC was finalizing rules on securing and expanding capital for power generation operators and wholesale electricity and retail services (SEC POWERS) to simplify registration of securities.
Under the Electric Power Industry Reform Act of 2001 (EPIRA), power generation companies and distribution utilities are mandated to offer and sell at least 15 percent of their shares to the public.
Under the guidelines, the SEC Markets and Securities Regulation Department (MSRD) will complete the review of the registration statement of such companies within 45 days from filing, in accordance with the requirements of the Securities Regulation Code (SRC).
The guidelines will also waive the minimum public float requirement of 20 percent for listed companies in favor of the 15 percent minimum requirement under EPIRA.
“The simplified procedure is expected to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors, as provided under the EPIRA Law,” Francisco said.
“We will be officially launching these guidelines soon, together with our counterparts from the Energy Regulatory Commission [ERC], to further promote the initiative to covered companies,” he said.
Various sectors are seeking the suspension of the mandatory public listing requirement for small renewable energy players in the country.
Several renewable companies have listed on the Philippine Stock Exchange including SP New Energy Corp., Alternergy Holdings Corp., NexGen Energy Corp., Citicore Renewable Energy Corp. and Raslag Corp.
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