The Securities and Exchange Commission is laying down the framework that will make it attractive for small businesses to raise capital through the stock market.

For one, the SEC plans to put up the Office for the Advancement of Strategic Investments in SMEs (OASIS) to spur more IPO listings from the small and medium-sized enterprises (SMEs) sector.

SEC chairman Emil Aquino said most SMEs lack the funds to expand operations or recover from the impact of the COVID-19 pandemic.

“As some areas are moving to the recovery stage, MSMEs continue to confront a sharp drop in demand and revenue specially as we deal with the continuing threats of Covid-19. With this landscape, it is the government’s thrust including the commission to support the sector’s journey towards recovery,” he said.

“Given that, we fully support more IPO listings in the country including in the SME sector. We would be more than happy to see more SMEs undertaking IPOs. It is part of our mission to provide the necessary assistance to achieve this commitment,” Aquino added.

Aquino said an initial public offering will allow a company to raise money to fund operations, fuel growth, fund recovery and pay down debt.

“IPO propels progress, opportunities, recovery, employment, livelihood and all things related to building up,” he said.

Aquino said the SEC would also engage multilateral agencies such as the Asian Development Bank and International Finance Corporation in launching SME-focused investment funds.

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SEC’s Emil Aquino wants more SMEs to list
Source: Filipino Daily Inquirer