The Philippine Stock Exchange plans to issue preferred shares to prospective investors as a part of the plan to bring down brokers’ ownership in the exchange to 20 percent.
PSE said in a regulatory filing its board of directors approved the plan to create preferred shares by reclassifying 14 million unissued common shares into 14 million preferred shares with a par value of P1 apiece.
The proposed creation of preferred shares will be presented for shareholders approval during the company’s stockholders meeting next month.
“The issuance of preferred shares will allow the company to attract prospective investors which will allow preference over common shareholders, in order to help bring down the broker ownership to 20 percent,” PSE said.
The voting preferred shares will be cumulative in payment of dividend, non-participating in any further dividends and non-convertible to common shares.
PSE said earlier that brokers’ ownership in the exchange rose to 26.44 percent as of end-February 2019, higher than the 20-percent industry limit prescribed under the Securities Regulation Code.
