Philippines open to lower public float for GCash, other firms

The Philippines’ securities regulator can lower the minimum float requirement for companies conducting initial public offerings as the country’s stock exchange seeks more listings, officials said.

IPO-bound companies can apply for “relief” from the 20% minimum public float requirement for new listings, according to McJill Bryant Fernandez, commissioner at the Securities and Exchange Commission.

“We are firm in terms of that 20% float, but we are not insensitive,” Fernandez said on Wednesday on the sidelines of InvestPH 2025 forum. Companies can raise their public float to 20% at a later time, he said.

The regulator’s openness to ease rules comes as the Philippine bourse, a laggard in the region in terms of trading volume and number of listed firms, is hoping for some big listings this year despite weak valuations.

The Philippine key stock index has fallen almost 4% since the start of the year after rising 1.2% in 2024. In contrast, the MSCI Asia Pacific Index has risen 4.5% this year.

The company behind top mobile wallet GCash, one of the potentially large IPOs, has requested a lower public float as it aims for a valuation of at least $8 billion.

The PSE has yet to see its first IPO of the year, although it expects at least three large offerings in 2025, including that of fintech GCash, PSE President Ramon Monzon said in a separate interview with Bloomberg TV’s Haslinda Amin on Wednesday. 

Utility company Maynilad Water Services Inc. is also expected to sell shares later this year, he added.

Monzon said the “challenge really is to get more companies to list.” A lot of companies don’t see the need to raise funds through the stock market because banks are liquid and have funds to lend, he added.

In the case of GCash, the fintech company can seek exemptive relief available to firms whose IPOs are worth at least 5 billion pesos ($87 million) to have a lower public float of 15% instead of the current 20%, Monzon said.

Monzon said companies have to conduct a follow-on offer or private placement to boost the public float to 20% within two years after an IPO.

GCash has been pushing for a lower public float of between 10% and 15% given the size of its potential IPO. Bloomberg News earlier reported that the IPO could potentially raise up to $1.5 billion, a record amount in the country.

Monzon also said he sees retail investors accounting for 25% to 30% of the market in the next year or two, from around 19%-20% currently. “We are making sure that we enable more retail investors to trade the market seamlessly,” Monzon said. For instance, the bourse allowed GCash account holders to invest directly in stocks.

InvestPH 2025 is organized by the Philippine Stock Exchange and co-hosted by Bloomberg LP, the parent company of Bloomberg News.