Companies in infrastructure push allowed to list shares

ABS-CBN News

Posted at Nov 10 2016 03:15 PM | Updated as of Nov 10 2016 05:20 PM

MANILA - Regulators have allowed companies building infrastructure projects under the government’s public-private partnership scheme to list shares on the stock exchange, according to rules released this week.

The guidelines cover companies or joint ventures that have been awarded PPP contracts worth no less than P5 billion. Companies that don't meet the three-year track record and operating requirement may apply for listing as long as they comply with the rest of the Philippine Stock Exchange's rules.

"In support of President Duterte's programs to sustain economic growth, listing PPP companies at the bourse will provide additional source of funding for PPP projects," the Securities and Exchange Commission said in a statement.

PPP firms that list shares will not be allowed to hold a secondary offering. They will also be required to submit a business plan at least three years before their contract with government expires.

Duterte plans to raise infrastructure spending to record levels to replace the country's ageing roads, railways and airports that have held back growth and cost the economy up to P2.4 billion in daily losses.