MANILA, Philippines – The Philippine Stock Exchange has approved the request of Chinatrust Philippines to halt the trading of its shares as the mid-size bank would not meet the 10% required public ownership requirement.
The stock exchange posted a statement on its website on Tuesday, February 14, that Chinatrust will go on a 3-day trading suspension starting February 21 ahead of its delisting effective February 24.
The suspension period will ensure that all related transactions are completed, it said, adding that the bank will buy back the shares of minority shareholders who opt to sell.
The bank’s shares traded at P24 apiece on February 13. It has a public float of less than 1%.
The stock exchange has previously announced that it will strictly impose a rule that all listed firms must meet the required minimum public float of at least 10%, otherwise face suspension or delisting in 2013.
The rule is meant to improve good governance among publicly listed firms by ensuring that there are enough minority owners who buy and sell their shares through the exchange and keep the listed firm accountable.
Chinatrust is the latest among the over 100 listed firms that do not meet the required public float.
Others, including giant oil firm Petron Corp., has opted to sell more shares to meet the stock exchange’s rule and allow investors to continue to trade their shares.
Chinatrust Philippines is a subsidiary of Chinatrust Commercial Bank, Ltd. (CTCB) of Taiwan. It has been trading its shares in the local exchange since 1999. – Rappler.com