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SUMMARY OF CHANGES TO THE LISTING RULES
The following is a summary of Listing Rules approved by the Board of
Governors of the Exchange in its regular meeting on May 24, 2000.
First Board
- A company shall have three alternative criteria for listing on the
First Board:
- Track record of profitable operations for three years (the old
rule); or
- Market capitalization of P 500 Million and a five year operating
history; or
- Net Tangible Assets of P 500 Million and a five year operating
history.
- For companies applying for initial listing from 2000 to 2003, availing
of the first option described above, the profitability requirement
shall be relaxed as follows:
- The pre-tax-profit requirement P 10 Million for the years 1998,
1999 and 2000 shall be removed.
- The cumulative pre-tax profit requirement shall be reduced to
P 30 Million.
The First Board retains minimum capitalization requirement of
an authorized capital stock P 400 Million of which 25% must be
subscribed and fully paid.
The Second Board
- The Second Board category for companies with track record is removed
( in effect, companies with or without track records may list on
the Second Board under the same set of criteria).
- The List of Preferred Industries is withdrawn ( a company classified
under any industry may qualify to list ).
- The lock-up shall be applied only to controlling shareholders for
a period of six months following listing.
- A company must have an operating history of at least one year.
- The market capitalization must be at least P 250 Million.
- Secondary shares shall now be allowed to be offered in an IPO.
A rule approved by the last Board of Governors does not allow a change
in the primary purpose of the corporation for a period of five years.
The Second Board retains the minimum capitalization requirement of at
least P 100 Million of which 25% percent must be subscribed and fully
paid. Note that there is no ceiling imposed.
Rules Applicable to Both Boards
- In place of financial projections, a detailed report on active business
pursuits and operational targets shall be required.
- The Chainlisting Rule shall be amended as follows:
“ A subsidiary or parent company of an existing listed issuer
will not normally be considered suitable for listing if the assets
and operations of the applicant are substantially the same as those
of the existing listed issuer. In arriving at a decision, The Exchange
will consider the applicant’s business or commercial reasons for listing.”
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