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Philippines Stock Exchange Listings

The Philippines Stock Exchange has 3 tiers of which companies can apply for listing on the Philippines Stock Exchange:

First Board

Basic Guidelines

A track record of profitable operations for three (3) full fiscal years; or

  1. A market capitalization of P500 m, provided that it has a five-year operating history; or
  2. Net tangible assets of P500 m, provided that it has a five-year operating history.

Track Record Requirements

A company must have a cumulative consolidated pre-tax profit of at least at least P50 Million and a minimum pre-tax profit of P10 Million for each of the three (3) full fiscal years immediately preceding the application for listing. For purposes of this rule, pre-tax profit shall not include non-recurring and extraordinary income, nor shall it be reduced by non-recurring and extraordinary loss. The applicant must further be engaged in materially the same businesses and must have a proven track record of management throughout the last three (3) years prior to the filing of the application.

Exceptions to the 3 year track record rule:

 

  1. The applicant company has been operating for at least Ten (10) years prior to the filing of the application. The applicant company shall have a cumulative pre-tax profit of at least P50 Million, excluding non-recurring and extraordinary income and/or loss, for the last Three (3) fiscal years immediately preceding the application for listing. No net operating loss must have been registered in the fiscal year immediately preceding the filing of the application;
  2. The applicant company is a newly formed holding company which uses the operational track record of its subsidiary(ies). The company, however, is prohibited from divesting its shareholdings in the said subsidiary(ies) for a period of three (3) years from the listing of its securities. The prohibition shall not apply if a divestment plan is approved by majority of the applicant company’s stockholders.

Numerical Criteria

Authorized Capital Stock-
   Minimum-
   P400,000,000.00

Subscription & Paid-up-
   Minimum-
   P100,000,000.00

Operating History

For a track record of profitable operations- At least three (3) full fiscal years prior to the filing of the listing application if with track record
For a market capitalization or net tangible assets of P500M – at least five (5) years.

Second Board

Basic Guidelines

  1. The applicant company must demonstrate its potential for superior growth to the Exchange;
  2. It must have an operating history of at least one (1) year prior to its listing; and
  3. At listing, the market capitalization of the company must be at least P250 m.

Track Record Requirements

None, but must demonstrate a potential for superior growth, through the submission of Statement of Active Business Pursuits and Objectives.

Numerical Criteria

Authorized Capital Stock-
   Minimum-
   P 100,000,000.00

Subscription & Paid-up-
   Minimum-
   P 25,000,000.00

Condition on Paid-up: at least 75% of the paid-up must have already been disbursed to the project, venture or business referred to in the business plan

Operating History

At least one (1) year prior to listing.

SME Board

Basic Guidelines

The applicant company shall be evaluated based on the following:

  1. The integrity and capability of the company’s management and its controlling stockholders;
  2. The company’s prospects of further growth and profitability;
  3. The viability of the business and sustainability of the projected earning stream; and
  1. The company’s lack of existing material conflicts of interest.

Track Record Requirements

The applicant company should have been operational for at least one (1) year with positive net operating income (income before interest, taxes, depreciation and amortization-EBITDA) during the last financial year.

Numerical Criteria

Authorized Capital Stock-
   Minimum-
   P 20,000,000.00
   Maximum-
   P 100,000,000.00

Subscription & Paid-up-
   Minimum-
   25% of the ACS

* The applicant company should have net tangible assets of at least Five Million Pesos (P 5,000,000.00). The net tangible assets requirement is not applicable to information technology companies.

Operating History

At least one (1) year from filing