roel refran - philippines stock exchange - advantages if listing on the philippines stock exchange...
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Advantages of Listing in the
Philippine Stock ExchangePhilippines Nickel
November 4, 2015
Atty. Roel A. RefranChief Operating Officer
The Philippine Stock Exchange, Inc.
1
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The Philippine Stock Exchange, Inc.
Disclaimer
This document is a property of the PSE and cannot be used or reproduced, distributed or
forwarded by any person or company, in any form and in any manner, without the written
consent of the PSE. Any and all unauthorized reproduction, distribution or forwarding of
this document, in whole or in part, is subject to legal action.
This document is not intended for general circulation and does not, in any form, constitute
legal, financial or investment advice and neither does it make any recommendation or
endorsement to buy and/or sell any kind of investment product(s). The PSE reserves the
right to make adjustments, omissions, corrections, and other similar actions to this
document at any period of time. The PSE does not warrant or represent, expressly or
impliedly, the accuracy, validity, correctness and completeness of the information stated in
this document. The PSE, together with its affiliates and subsidiaries, expressly disclaim any
and all liability arising from any actions or decisions made on the basis of this document,
its content, and/or any changes, omission or error of the aforementioned.
Any views or opinions, either defamatory or complimentary, are solely those of the
author/speaker and do not necessarily represent those of the PSE. The PSE together with
its affiliates and subsidiaries will not accept any liability arising from the consequences of,
and any actions or decisions made in respect to any statements expressed henceforth.
![Page 3: Roel Refran - Philippines Stock Exchange - Advantages if listing on the Philippines Stock Exchange and the recent fundraising activities by mining companies and in particular nickel](https://reader031.vdocuments.site/reader031/viewer/2022022202/588595cf1a28abd2498b4a95/html5/thumbnails/3.jpg)
The Philippine Stock Exchange, Inc.
Outline
The Capital Market
Philippine Economy Snapshot and Stock Market
Performance
Raising Capital for Your Business
ASEAN Initiatives
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The Capital Market
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The Philippine Stock Exchange, Inc.
The Capital Market
Companies
Financial
Instruments
Investors
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Philippine Economy Snapshot
and Stock Market Performance
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The Philippine Stock Exchange, Inc.
The Philippines
Real economy is generally stable
Continued reforms
Financial markets more volatile than the real market
National
Information and
Credit Evaluation
Ratings Inc.
Ave. Inflation (in %) 1.6 (9M 2015)
91-day T-bill Rate (in %) 1.491 (Oct 2015)
WEF Competitiveness
Ranking47 (2015)
Investment Grade Ratings From
Sources: Philippine Statistics Authority, Bangko Sentral ng Pilipinas, Department of Treasury, and WEF 2015-
2016 Global Competitiveness Report
Nat’l Gov’t Expenditure
Growth (in %)11.4 (8M 2015)
Philippine Economy Snapshot
GDP Growth (in %) 5.6 (2Q 2015)
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The Philippine Stock Exchange, Inc.
as of 20 Apr 2015
7,325.76 points
up by 1.32%as of 27 October 2015
all time high
8,127.48 points on 10 April 2015
27 YTD
record highs
ONE OF TWO INDICES to post growth for six consecutive years
Stock Market Performance
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Raising Capital for Your Business
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The Philippine Stock Exchange, Inc.
Funding Options Snapshot
Debt
Equity
Short-Term LoansMaturity of 1 Year
and Below
Medium-Term LoansMore than 1 Year to
5 Years
Long-Term Loans More than 5 Years
Growing Your Business
Listing through IPOOffering Shares to
the Public
Private PlacementOffering Shares to
Chosen Investors
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The Philippine Stock Exchange, Inc.
Benefits of Going Public
Listing by way of
Introduction
Access to Capital Markets
Enhanced Valuation
Improved Liquidity
Enhanced Credibility with
Stakeholders
Increased Public Awareness
Employee Retention/Attraction
Ways of Going Public
Initial Public Offering (IPO)
Listing by Way of Introduction
Benefits
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The Philippine Stock Exchange, Inc.
Board Listing Rules
2015 025 20302020Criteria Main Board SME Board
Authorized Capital Stock
At least Php500 million(US$11.31 million)
At least Php100 million(US$2.26 million)
Operating History
EBITDA (last 3 years)
Three years Three years
At least Php50 million(US$1.13 million)
At least Php15 million(US$339,182.34)
Directors
Minimum Public Offering
7 Directors, of which
2 are Independent
7 Directors, of which
2 are Independent
Based on Market Cap Based on Market Cap
*Adoption of the Philippine Mineral Reporting Code (PMRC) for Mining Companies
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The Philippine Stock Exchange, Inc.
Listing for Mining Companies
Certain reports need to be submitted
Mining companies are exempt from the
EBITDA and operating history requirements
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The Philippine Stock Exchange, Inc.
Philippine Mineral Reporting Code (PMRC)
Listing by way of
Introduction
Aligns reports with global standards
Sets out the guidelines for public
reporting of exploration results, mineral resources and ore reserves
Applicant companies must submit a report in accordance with
the PMRC
Reports of listed companies must be
PMRC compliant
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The Philippine Stock Exchange, Inc.
Minimum Public Offering
33%
25%
20%
15%
10%
0%
5%
10%
15%
20%
25%
30%
35%
< P500M P500M to P1B P1B to P5B P5B to P10B > P10B
Based on Market Capitalization
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The Philippine Stock Exchange, Inc.
Cost of Going Public
0.1%PSEListing Fee
Based on MARKET CAPITALIZATION
P15 Billion & below0.1% of MCAP but not
lower than P500,000
Over P15 BillionP15M plus 0.01% of the
excess over P15B MCap P50,000 processing fee for Main Board
P20,000 processing fee for SME Board
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The Philippine Stock Exchange, Inc.
Case Study: Fund Raising Activity in the PSE
Mining
Owns four operating
mines and has five
properties in various
stages of exploration
for nickel
Php 4.5 billion
Nature of Business Capital Raised Market Capitalization
On Listing Date As of 15 Oct 2015
Php 22.10 B
(US$ 491.27 M)Php 52.34 B
(US$ 1.16 B)
236.83%
Php 15.00
Offer Price
Php 16.50
Close on IPO
Book Value before Listing:
Php 14.65 B(US$ 325.55)
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The Philippine Stock Exchange, Inc.
PSE as a Listing Venue
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ASEAN Initiatives
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The Philippine Stock Exchange, Inc.
ASEAN Initiatives on Capital Markets
• Develop various financing methods
• Expand bond issues related to domestic demand and services
• Develop a credible local credit rating industry
ASEAN Bond
Market Initiative
•Ongoing marketing activities to create awareness of ASEAN as an investible asset class
•Active participation in the development of the ASEAN Capital Market Infrastructure Framework
Invest ASEAN
Initiative
Image Source: Google
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The Philippine Stock Exchange, Inc.
Enhanced ASEAN Exchanges Common Website
Dynamic header
with ASEAN trivia
and quick links
ASEAN Stars by rank,
market, or sector
Market news
Real-time
benchmark indices
stats
Twitter feed and
ASEAN FTSE
Analytics
www.aseanexchanges.org
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The Philippine Stock Exchange, Inc.
ASEAN Trading Link
MY
SG
TH
PH ?
ID ?VN ?
as of today, only three exchanges are interconnected via the link
GREATER MARKET
ACCESSto a large retail base
STRONGER
PRESENCEin the global arena
WIDER PRODUCT
SELECTIONacross all markets
ADVANTAGES
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The Philippine Stock Exchange, Inc.
FTSE ASEAN Index Series1
ASEAN CG Scorecard 2
ASEAN Disclosure Standards3
ASEAN CIS Fund Passport4
Other ASEAN Initiatives
Image Source: ASEAN Exchanges website, Google
Cross Border Issuance5
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The Philippine Stock Exchange, Inc.
ANNOUNCEMENT
November 129:00am-3:00pmDBP Makati
Register:+632 [email protected]
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The Philippine Stock Exchange, Inc.
Thank you!
© The Philippine Stock Exchange, Inc. (PSE). All rights reserved.
This document is a property of the PSE and cannot be used or reproduced, distributed or forwarded by any person or company, in any form and in
any manner, without the written consent of the PSE. Any and all unauthorized reproduction, distribution or forwarding of this document, in whole or
in part, is subject to legal action.
This document is not intended for general circulation and does not, in any form, constitute legal, financial or investment advice and neither does it
make any recommendation or endorsement to buy and/or sell any kind of investment product(s). The PSE reserves the right to make adjustments,
omissions, corrections, and other similar actions to this document at any period of time. The PSE does not warrant or represent, expressly or
impliedly, the accuracy, validity, correctness and completeness of the information stated in this document. The PSE, together with its affiliates and
subsidiaries, expressly disclaim any and all liability arising from any actions or decisions made on the basis of this document, its content, and/or any
changes, omission or error of the aforementioned.
Any views or opinions, either defamatory or complimentary, are solely those of the author/speaker and do not necessarily represent those of the
PSE. The PSE together with its affiliates and subsidiaries will not accept any liability arising from the consequences of, and any actions or decisions
made in respect to any statements expressed henceforth.
The Philippine Stock
Exchange, Inc.
Please follow us on:
@PhStockExchangePSE EDGE
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