The Philippine Stock Exchange is preparing to launch a mobile application that will enable retail investors to avail of their allocations during initial public offerings.
PSE chief operating officer Roel Refran said in a recent interview the launch of the mobile application was one of the options to facilitate the faster take-up of IPO allocations earmarked for local small investors.
Refran said the PSE would start offering the mobile application in the next IPO.
Companies planning to conduct an IPO are required to allot 10 percent of their offer shares to small investors.
Prior to the planned launch of a mobile application, retail investors planning to buy shares from a company conducting an IPO would have to line up to get application forms, fill them up and submit them to the receiving centers.
“Do you know how long it takes for them to line up and sign up for allocation? Now we are coming up with the mobile application so that for the next IPO we are ready,” Refran said.
“With the mobile application, investors would just have to download the application the take advantage of 10 percent allocation. This will ease up the burden in terms of gaps in the efficiency the we have,” he added.
Refran said retail investors would still have to go to their respective banks for the payment for the IPO shares pending the automation of the process.
The planned launch of a mobile application is also aimed at enhancing the retail investor participation in the stock market.
But since IPOs currently in the pipeline have been deferred due to weak market conditions, the PSE may launch the new mobile application by next year yet.
Two pending IPOs, namely consumer tech firm Cal-Comp Technology (Philippines) and Campos-led Del Monte Pacific Ltd., have deferred their maiden share offering plans because of volatile markets.
Cal-Comp, a member of the Taiwanese technology conglomerate New Kinpo Group, was looking to raise P6.77 billion, while Del Monte, which the local unit of Del Monte Pacific Ltd., had planned a P17.55-billion maiden offering.