Philippines eyes easing IPO float rules to lure firms like GCash

[MANILA] The Philippines’ securities regulator plans to relax free float requirements for initial public offerings (IPOs) as it seeks to entice more companies, especially large ones, to list on its faltering stock market.

The Securities and Exchange Commission (SEC) is seeking stakeholders’ comments on the proposed rule changes that would require smaller minimum public float for companies with bigger offerings.

The move could clear the way for the IPO of local fintech leader GCash, which has deemed that the current 20 per cent minimum public float requirement is too high for a potential offering that would value the e-wallet at at least US$8 billion.

The SEC said that the proposed tweaks considered “observations on market absorptive capacity and prevailing investor risk appetite, as well as global and regional shifts in IPO activity and evolving approaches in peer markets”.

Under its proposed tier-based rules, a minimum 33 per cent public float level will be required for companies with expected market capitalisation of 500 million pesos (S$11 million) or less. The required level will fall to 12 per cent for companies with an expected market value of more than 150 billion pesos.

Companies will be required to keep certain minimum public float levels after listing, and those that went public prior to the effectivity of the new rules must maintain the 20 per cent minimum level, according to the draft rules.

GCash has previously called for the easing of minimum public float rules as it weighs a possible IPO, potentially in the second half of 2026, Bloomberg News reported earlier, citing sources with knowledge of the matter. GCash did not immediately respond to a request for comment on the SEC’s proposed rule changes.

The regulator said stakeholders should submit their comments on or before Dec 23. BLOOMBERG