The Philippine Stock Exchange (PSE) signed an underwriting agreement with BDO Capital & Investment Corporation and First Metro Investment Corporation for the conduct of its stock rights offering (SRO) aimed at diluting broker ownership in the exchange to below 20 per cent.
“This is a reform that has remained unresolved for many years,” said PSE Chairman Jose T. Prado in disclosure on Monday.
PSE President and CEO Ramon Monzon explained that the firm commitment of the underwriters to the exchange’s SRO effectively reduces the ownership of brokers in the PSE to below 20 per cent.
“Compliance with the Securities Regulation Code on the 20 per cent maximum broker ownership in the exchange has finally been achieved,” Monzon said.
The PSE is offering 11.5 million shares in the SRO to all its existing shareholders as of March 1, 2018, at P252 per share. The offer period will be from March 12-16, 2018.
Also Read: PSE Posts P701m Net Income in 2016
Broker shareholders will not be allowed to participate and subscribe to the offered shares as the whole objective of the SRO was to comply with the SRC provision that no single industry can own more than 20 per cent of the voting rights of a stock exchange.
“Many new things are happening at the exchange and we are quite excited to enter this new chapter in our history as we work towards a more developed capital market for the benefit of the nation and the investing public,” Monzon added.