The Energy Regulatory Commission issued a new resolution clarifying the mode of public offering of power generation and distribution companies in compliance with the Electric Power Industry Reform Act of 2001.
The EPIRA requires generation companies and distribution firms to offer and sell to the public a portion of not less than 15 percent of their common shares of stocks.
The modes include the listing of the generation companies and distribution utilities in the Philippine Stock Exchange and listing of the shares of stock in any accredited stock exchange or direct offer of a portion of registered enterprises’ capital stock to the public or their employees.
The ERC, however, said the offer of the common shares of stock through an employee stock option plan or any other plan would not be considered a public offering because it is limited only to the workers.
“Said offer and sale of shares of stock, through ESOP, is considered as public offering only when the generation company or DU is a registered company or DU is a registered enterprise under the Omnibus Investment Code,” the resolution said.