THE Philippine Stock Exchange, Inc. (PSE) revised the lock-up rule for small, medium, and emerging (SME) companies to only cover non-public shareholders.
In a memorandum circular released on Monday, the local bourse said principal stockholders — or those holding at least a 10% interest in a firm, subsidiaries or affiliates, directors, principal officers, and others who can influence the company’s management are the only ones who are mandated to refrain from disposing of their shares for a one-year period from the shares’ listing.
Also subjected to the revised rule are their related parties, including the immediate families of principal stockholders, directors, and principal officers.
“All other stockholders shall not be subject to mandatory lock-up under this provision,” the circular read.
The PSE rule states that shares issued or transferred and fully paid within six months before the start of a firm’s public offering or prior to its listing date, if it is listing by way of introduction, and with a transaction price lower than the offer price, are subjected to a lock-up period of at least a year from listing. — Adam J. Ang