Byline: ANA MARIE MACUJA

The Board of Investments (BoI) is committed to help the Philippine Stock Exchange (PSE) encourage more companies to go public paving way for a more active stock market.

According to SEC Chair Lilia R. Bautista, she was told by Trade Undersecretary Gregory

"He said they are positive about it but they can not require all probably the big ones only," Bautista said.

Bautista said that two of the surest ways to perk up the dampened market is to encourage more companies to list its shares and for listed firms and the PSE management as well to adhere to good corporate governance.

According to Bautista, the investing public is presented with only a few securities to invest in. She added there is a need for more companies to list in the PSE so there will be a vast of choices for the investors.

Last year, the PSE witnessed only five Initial Public Offering (IPO). These companies were Banco de Oro, Salcon Power Corp., Jolliville Holdings Inc., Makati Finance Corp. and Highlands Prime Inc.

There are now about 237 listed companies at the PSE.

Aside from common stocks of companies, the PSE also trades other securities such as preferred stocks, warrants, depository receipts, the small denominated Treasury bonds (SDTs) and Treasury Bills (T-bills).

With the launching of the "New Exchange" last year, the PSE vowed to introduce more products for the investing public to choose from. Among these products are real estate investment trust, the Exchange-traded funds, mutual funds and a dollar board.

The PSE wants more mutual fund companies in order to further diversify the portfolio of products that the Exchange offers to the investing public.

At present only two mutual funds are being traded at the PSE namely Filipino Fund Inc. and the New York-traded First Philippine Fund.

Meanwhile, the Philippine Stock Exchange is planning changes in the bookbuilding process to make it easier and less expensive for companies that plan to go public.

PSE President Ernest Leung disclosed the bourse is now discussing with the Securities and Exchange Commission the possibility of doing the local and international bookbuilding for initial public offerings simultaneously.

"The shift from sequential to simultaneous bookbuilding will shorten the process to less than a week," said Leung.

He said that while the shortened process would only mean "marginal savings" to companies, it still means a lot in a sluggish market. Bookbuilding helps stock issuers gauge demand for the shares and set an acceptable price for investors.