Listing FAQs – The Philippine Stock Exchange, Inc.

Home ⏵ Listing ⏵

What is the difference between raising capital via debt financing as compared to listing in a stock exchange?

Bank financing (debt financing) is when a borrower obtains capital using its assets as collateral that must be paid over a specific period subject to interest or fees. When capital is raised through a loan, the borrower’s ownership in his company remains intact. On the other hand, listing in an exchange or public equity financing via the sale of shares in a stock exchange helps the borrower raise capital by selling his company’s shares to the public. In return for the investment, the shareholders receive ownership interests in the company and can receive a portion of the company’s profits via dividends. With listing, there is no immediate burden of making repayments for the money raised.

What is an IPO?

An Initial public offering (IPO) refers to the process of offering shares of a private corporation to the public.

What industries or businesses can go public?

Any SEC registered company that meets the PSE’s Listing General Criteria may apply. The applicant may access the listing requirements through https://www.pse.com.ph/ipo-listing-requirements/.

What is the maximum amount of capital that a company can raise from going public?

There is no limit as to maximum (or minimum) amount of IPO proceeds a company can raise. This will depend on the quantity of shares offered to the investor and the share price.

Can a company with a net loss qualify listing in the SME Board?

To qualify for the SME Board, a company must have a cumulative EBITDA (Earnings before interest, taxes, depreciation and amortization) of at least Php15 million or cumulative operating revenue or sales of at least Php150 million for the last three (3) fiscal years or such a shorter period as the company has been operating, with at least 20% average net sales or operating revenue growth rate for the last 2 fiscal years.

Who are the parties involved in an IPO?

Through the PSE Listing Assistance Program, the Exchange connects the listing applicant to experienced and established financial advisors. The applicant may access the list of the partner investment banks through (insert link to Listing /Listing Resources / External Advisory Team) and SEC accredited Group A auditors and legal firms through (insert link to SEC advisory board subpage).

How long is the IPO process?

To fulfill the listing application, the applicant will navigate through four main stages of the listing process namely the Preparatory Stage, Filing Stage, Processing and Evaluation and Offering and Sale of Shares.

For the Preparatory Stage or Pre-filing process, this would mainly depend on Applicant Company’s IPO readiness (business and corporate structure, financial statements, completeness of company document and etc.). As for the Filing Stage up to the Listing date, the usual timeline would be around 3 months. With that said, a typical IPO takes about six (6) to seven (7) months.

When is the best time to go public?

While the right time is different for every company, it is advisable to go public when the company is in need of funding to fulfill its growth expansion plans. However, the best time to prepare for an IPO is at the onset of setting up the business, to enable the company to readily comply with listing requirements once it has decided to go public.

How to choose the right IPO advisers?

Typically, a company selects its partners based on their experience, their proposed rates and their expertise. For the security and assurance of listing applicants, The Securities and Exchange Commission has a list of accredited investment houses and underwriters that can be accessed through their website.

What are the obligations of a publicly listed company?

Once accepted into the Exchange, a publicly listed company (PLC) must comply with the continuing disclosure requirements of the Exchange. The company must promptly make available all information, through the submission of structured (reportorial requirements that inform investors of the condition of the PLC for a certain period) and unstructured disclosures (communications or corporate developments as they occur and are intended to update the public on the activities and operations of the PLC) through the Exchange’s disclosure system – PSE Electronic Disclosure Generation technology (PSE EDGE).

How can a company obtain advice on listing?

The Exchange is extending FREE training and consultation for interested companies. To book your virtual session, simply fill out the Listing Consultation Form through https://www.pse.com.ph/listing-application-online-consultation/ or you may email your request to [email protected].

pse business INquIries

PSE is ready to assist you with any inquiries you may have. Just leave us a message.

Website user experience

We'd love to know your thoughts on the new PSE website. Your opinion matters and will be used to improve your PSE website experience.

Your overall satisfaction of the new PSE website:

Areas of Improvement

Send us a message

Got any questions or feedback? We’re here to listen!