The Philippine Stock Exchange Inc. is looking at introducing new measures that will further protect investors.
Ramon Monzon, PSE President, said these measures include a new requirement to allocate a specific sum for stabilization fund of initial public offering (IPO) and follow on offering (FOO) and a new provision that will prevent companies from changing the par value of their shares right before an IPO.
Monzon said the PSE will start collecting public comments on the measure that will require companies doing a share sale to allocate 15 percent of its proceeds for price stabilization activities should the share sale include secondary shares.
Monzon meanwhile said that the measure eyed to prevent the reduction in par value of companies shares prior to an IPO is to stop the impression that investors are buying a company at cheap price.
