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Philippine SEC drafts new rules for cornerstone investors in IPOs

The Philippine Securities and Exchange Commission (SEC) proposes new guidelines for initial public offerings (IPOs), focusing on the disclosure of cornerstone investors in the final prospectus. The draft, open for public comment until February 1, mandates that these investors buy shares at IPO price and adhere to a 30-day lock-up period. Additionally, they may qualify for board representation if they hold sufficient shares. The proposed rules require including cornerstone investment agreements in the issuer’s registration statement, ensuring equal access to information for all investors. This move aims to enhance IPO transparency and investor confidence. Industry experts like Juan Paolo E. Colet of China Bank Capital Corp and Michael L. Ricafort of Rizal Commercial Banking Corp applaud the policy, anticipating a more attractive and fair IPO market.


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