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Longer shelf registration to ease capital-raising pressures for companies
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BusinessWorld Online
“Capital raising will be easier for Philippine companies, as regulators are now giving them a wider window to issue securities,” Unicapital Securities Equity Research Analyst Jeri R. Alfonso said in a Viber message on Tuesday.
Under the amended Rule 8.1.2 of the Securities Regulation Code (SRC), companies may now issue securities under a shelf registration for up to five years instead of the previous three.
The commission also simplified filing requirements for subsequent tranches under a shelf registration.
Beyond improving access to the capital market, we want to make it easier for companies to maximize the advantages of tapping the capital market,” SEC Chairperson Francis Ed.
Market watchers said the rule change may boost the use of shelf registration in the Philippines, which has historically lagged regional peers due to narrower issuance windows and higher compliance requirements.
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