This pertains to the write-up in MST Chatter entitled “Several PSE employees are anti Pro-Friends”, written by Ms. Jenniffer B. Austria which was published in the June 22, 2015 issue of The Standard. The article states, “[r]eal estate developer Pro-Friends Group Inc. is having a hard time securing regulatory approval for an initial public offering, apparently because of an anti Pro-Friends lobby instigated by several employees of the Philippine Stock Exchange itself.” The succeeding items in the article also mentions that PSE employees lobbied for the application to be rejected.
The Philippine Stock Exchange, Inc. (PSE) categorically refutes these allegations and would like to raise clarifications on what was stated in the article.
Pro-Friends, Inc. (the “Company”) does not have a pending listing application with the PSE.
While it did file in the second half of 2014 an application to list, the said listing application was deemed abandoned as of March 2015, in light of outstanding issues not addressed by the Company. The PSE rules explicitly provide that an applicant’s failure to comply with listing requirements within the prescribed period constitutes abandonment of the application.
The reason why the Company’s application to undertake an initial public offering (IPO) did not prosper was solely due to its non-compliance with standard requirements that the PSE requires of all IPO applicants. Likewise, there is no regulatory approval that can be sought by the Company for the simple reason that there is no active application filed with the PSE.
The PSE can receive complaints from the public on companies applying for listing and these grievances are submitted to the Listings Department of PSE for consideration. If there would be PSE employees who may have issues about the applicant companies, these complaints would be treated in the same manner as those that come from the public at large.
In sum, the PSE, as a self-regulatory organization pursuant to the Securities Regulation Code, has a list of standard requirements and set rules and regulations for companies who would like to tap the equities market to raise funds. Applicant companies must abide by these requirements, in addition to the requirements, in addition to the requirements ot the Securities and Exchange Commission, for their application to be considered. The write-up in MST Chatter last June 22, 2015 failed to mention that the PSE is guided by the listing rules and policies. The professional nature of the organization ensures that filings and other submitted requirements are reviewed and assessed based on their own merit and that the procedure for application is not influenced by employees. Our employees adhere to the highest standards of professional conduct; hence, any statement to the effect that PSE employees “stormed” the Listings Department for their complaints is incorrect and without any factual basis.
We hope we have made our points clear for the benefit of the investing public and the companies who wish to list in the PSE in the future. We hope that our views can be included in the succeeding issues of your newspaper.
ROEL A. REFRAN
Chief Operating Officer
The Philippine Stock