The Securities and Exchange Commission is launching a roadshow in Davao meant to make capital market access for even micro, small and medium enterprises readily accessible.
The SEC said the nationwide roadshow will begin at the Pinnacle Hotel in Davao City on February 15 this year and will focus on how MSMEs may tap the capital market as well as the crowdfunding platforms to raise funds for business expansion.
“The Covid-19 pandemic has caused many financial problems for a lot of MSMEs around the country. We at the SEC hope to stem their financial woes by providing possible solutions to these enterprises, particularly through the capital market and crowdfunding,” SEC chairman Emilio B. Aquino said.
Aquino will lead the Davao City roadshow with speakers from the Philippine Stock Exchange, Investment and Capital Corp. of the Philippines, the Philippine Chamber of Commerce and Industry, Investree Philippines SeedIn Technology and Round One.
This is an initiative led by the newly-created SEC Office for the Advancement of Strategic Investments in SMEs, which aims to encourage businesses to tap the capital market for external financing.
Crowdfunding, regulated by the SEC, is a fundraising activity typically conducted by start-ups and SMEs, where the public can support or fund a business idea through an online platform.
Under crowdfunding rules, SMEs no longer have to register securities with or secure approval from the SEC before they can solicit investments from the public. SMEs need only conduct their fundraising activity with a crowdfunding intermediary, funding portal or crowdfunding platform registered with the SEC.
An SME may raise as much as P10 million when its securities are offered and sold to any investor, and up to P50 million when offered and sold to qualified investors.
The crowdfunding intermediaries registered with the SEC include Investree Philippines, SeedIn Technology Inc. and Eastern Securities Development Corp. (Round One).
The initiative is also part of the SEC’s 888@88 program, meaning there should have been at least 888 companies that have tapped the capital market by the time the SEC celebrates its 88th anniversary in 2024.
After Davao City, the SEC will take roadshow to Cebu, Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, CALABARZON region, and finally Metro Manila.
