The Securities and Exchange Commission has extended the validity of financial statements to 180 days from 120 days of companies registering stocks for public offering.
Ephyro Luis Amatong, associate commissioner of the SEC, told reporters in an interview that the prior validity period has delayed the application of some companies. As a result, the companies must wait for the next quarter once their financial statements are 120 days or four months old.
Issuing companies that need more than 120 days to process or comply with the SEC requirements have no choice but to refile their applications once their financial statement turn stale.
This extended validity period for financial statements is one of the undisputed provisions under the 2015 Implementing Rules and Regulations (IRR) of the Securities Regulation Code.
“Hopefully, this will allow applicants using financials statements as of the end of September to be able to pursue their applications,” said Amatong, adding that “we will know if this is effective once one or two applicants are able to register their securities in March.”
Initial public offerings (IPOs) approved by the SEC before the end of 2015 but failed to materialize included those of Philstocks Financial Inc. and Pointwest Technologies Corporation.
The SEC gave Philstocks the green light to launch a maiden share sale of up to P185.89 million. Philstocks planned to sell 98.88 million primary shares, comprising 26.4 percent of its outstanding capital stock, at a maximum offer price of P1.88 per share.
Net proceeds of P167.51 million would have been used to fund margin financing, expansion of information technology infrastructure and software development, acquisition of marketable securities, branch expansion, advertising, marketing, acquisition, and promotions.
On the other hand, Pointwest planned to raise P2.08 billion by selling up to 417 million common shares with an overallotment of 62.55 million shares at an offer price of up to P4.35 apiece.
Proceeds will be used to expand delivery centers in the Philippines, expand US sales operations, develop digital products, and acquire applications and proprietary technologies.
The other companies with pending IPOs are TVI Resource Development Phils. Inc., Philippine Primark Properties Inc., Gweilo Corp., and Green Power Panay Philippines Inc.