The Securities and Exchange Commission (SEC) remains steadfast in enforcing the 20% minimum public float requirement for companies seeking an initial public offering (IPO). The SEC emphasizes that this higher public ownership requirement is vital for enhancing market depth, efficiency, and overall market integrity.
This rule is outlined in the SEC Memorandum Circular No. 13, Series of 2017, which increased the minimum public float from 10% to 20%. Beyond improving market liquidity, the minimum public float plays a critical role in ensuring better price discovery and reducing the risk of price manipulation. It also helps minimize ownership concentration, fosters good corporate governance practices, and strengthens the Philippine capital market.
After extensive consultations with the Philippine Stock Exchange (PSE), the SEC has agreed to allow an initial public float of 15% for certain companies, provided they meet strict criteria. Companies granted this exemption must bridge the gap to the 20% minimum within 24 months of listing, and the SEC must deem this relief necessary on a case-by-case basis. This provision applies to IPO applications that have already been filed and accepted by both the SEC and the PSE.
As of March 25, 2025, neither the SEC nor the PSE has received any applications for this regulatory relief from potential IPO applicants.
The SEC remains committed to upholding a fair, transparent, and efficient capital market. While the Commission welcomes new listings, it continues to enforce stringent regulatory standards that ensure the long-term stability and integrity of the Philippine capital market and economy.
