SEC Eyes 45-Day Processing For IPOs

The Securities and Exchange Commission (SEC) has vowed to strictly adhere to the 45-day processing of initial public offerings (IPOs) as it aims to boost the country’s capital market.

The SEC is considering stricter about its 45-day processing for IPOs because it wants to make it easier, likewise streamline the structure and process for IPOs in the future. I Photo: The Philippine Stock Exchange

“We are looking at being stricter about our 45-day processing for IPOs because we want to make it easier and we want to streamline the structure and process for IPOs in the future,” said SEC Commissioner Kelvin Lester K. Lee during a recent media roundtable in Makati City.

“There are minimal IPOs right now because of the interest rate environment, but we are foreseeing that IPOs will be a lot once that settles. We want to make sure that companies are ready for it, and we want to make sure that processing is much faster than before,” he added. Lee explained that the previous average processing time was “a bit beyond the 45-day period” due to exchanges in documents that prolonged the process.

“The average before, as I understand, is a bit beyond the 45 days. Usually, that is because, from the experience of our departments, there is often a lot of exchange of documentation. The process of IPOs is getting longer as a result. We want to make it streamlined, we want to make it faster,” Lee said.

Furthermore, the SEC will issue the necessary documentation informing the public of its strict adherence to the 45-day processing time for IPOs.

He stressed, “We will be strictly adhering to a 45-day processing period. Technically, it is still internal rules, but we will have to let the public know. That is something we want to signal to the public, that we are looking at making things easier in terms of capital markets.”

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