Running away from the Gray Rhino: PSE moves crucial stock rights to next month

The country’s Stock Exchange took measures in transferring a P3.16-Billion crucial stock rights offering to March to avoid the perceived threat that affects the global economy.

“The PSE has decided to adjust the schedule of its stock rights offering given the unfavorable global market conditions affecting the domestic capital market,” stock exchange stressed.

To access Philippine Dealing Systems Holdings Corp. (PDS Group), which comprises with Philippine Depositary and Trust Corp., Philippine Securities Settlement Corp., and the holding firm to fixed-income trading platform Philippine Dealing Systems Holdings Corp., qualified shareholders have to buy 115 million shares handled by PSE.

Earlier this month, Department of Finance was ordered the procurement to make a bid for PDS, but the result is it faces derailment from Land Bank of the Philippines where PSE frustrated Finance Secrtetary Carlos Dominguez III over not making it to legally follow the ownership structures.

Prior to a provision in the Securities Regulation Code capping single-industry ownership of any operating exchange in the country, the PSE assures that stock rights offering wouldn’t give a chance to brokers in achieving the mission of diluting the combined ownership of trading participants.

The expectations of rising US higher inflation brought massive sell-offs witnessed by markets nationwide.

The development of new products will be rooted from proceedings, such as trading platforms for commodities and the secondary, as well as building the capital dedicated for its new headquarters in Bonifacio Global City.

The offering will start on March 12 to March 16 while focuses to listing on March 22 with the new timetable as the basis.

The PSE released its new rules to First Metro Investment Corp., and BDO Capital to organize the stock rights offering.