PSE’s Monzon downplays series of market delistings

The Philippine Stock Exchange’s (PSE) top official sees no cause for concern after a series of firms delisted or signaled plans to pull out from the local bourse.

“Up to June 30, we had three delistings, the other two [were] involuntary — kami ang nag-delist sa kanila (we delisted them) because they were not complying,” PSE President and Chief Executive Officer Ramon S. Monzon told reporters on the sidelines of a Securities and Exchange Commission event last Friday.

“For the second half, I think we have [Metro Pacific Investments Corp.] and Holcim [Philippines, Inc.],” Mr. Monzon said.

He said as of June 30, the PSE had three delistings, which was lower compared with other markets in the region such as Singapore Exchange Ltd., which recorded five delistings.

“All the other exchanges had [delistings as well],” he added.

Earlier this year, Eagle Cement Corp. voluntarily delisted from the PSE after the acquisition of San Miguel Corp. unit San Miguel Equity Investments, Inc. (SMEII) of the company’s 4.4 billion common shares at PHP 22.02 per share, constituting 88.5% of the total issued and outstanding shares of the company.

SMEII conducted a tender offer to acquire the 574.9 million common shares held by shareholders, which represented 11.5% of its total issued and outstanding shares.

In March, the PSE delisted Unioil Resources & Holdings Co., Inc. and PICOP Resources, Inc. due to their continuous non-filing of reportorial requirements and nonpayment of penalties for disclosure violations.

Metro Pacific and Holcim have both signaled intentions to delist from the main board of the PSE after significant shareholders of both companies signaled their intention to take the companies private.

Additionally, 2GO Group, Inc. filed for voluntary delisting from the PSE after SM Investments Corp. conducted a tender offer for up to 378,817,279 common shares or 15.39% of the issued and outstanding common stock of the company at P14.64 apiece.

Meanwhile, Mr. Monzon said that Cosco Capital, Inc. had signaled its intention to conduct an initial public offering (IPO) for an industrial real estate investment trust (REIT) within the year.

“[They] are supposed to be filing their application this month or next month, fina-finalize na lang ‘yung mga listahan ng underwriters (they are just finalizing the list of underwriters),” Mr. Monzon added.

He said the company might list shares worth “anywhere between P15 to 30 billion.” The company has yet to disclose information on the possible listing.

“That’s one big REIT for the second half, we have to get other IPOs,” Mr.  Monzon said.

To date, the local bourse operator has yet to receive new filings from companies intending to go public. — Adrian H. Halili