SEC launches investment roadshow for SMES in Davao

THE Securities and Exchange Commission will launch today, Wednesday, a nationwide roadshow in Davao, an activity that aims to highlight easy and accessible funding options for small and medium enterprises (SME) in the capital market.

The SEC said its roadshow on capital market formation for SMES and start-ups will begin at the Pinnacle Hotel in Davao City. The roadshow will emphasize also how micro, small and medium enterprises (MSME) and SMES can tap the capital market, including 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 be leading the Davao City roadshow, together 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.

The roadshow is an initiative led by the newly created SEC Office for the Advancement of Strategic Investments in small and medium enterprises (SME), which aims to encourage these firms to explore the capital market as a means to acquire external financing.

The new office seeks to promote the interests of SMES by setting up viable alternatives in raising capital by simplifying the capital-raising products, streamlining the registration process, and encouraging investment houses and other financial institutions to implement Sme-friendly underwriting and advisory programs, among others.

Crowdfunding 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. The SEC regulates crowdfunding activities in the country.

Under the crowdfunding rules, SMES no longer have to register securities with or secure approval directly 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.

Within a 12-month period, 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.

There are currently three crowdfunding intermediaries registered with the SEC. These are Investree Philippines, Seedin Technology Inc. and Eastern Securities Development Corp. (Round One).the initiative is also part of the SEC’S 888@88 goal, which means that there should have been at least 888 companies that tapped the capital market by the time the SEC celebrates its 88th anniversary in 2024.

After Davao City, the SEC will have its roadshow to other areas in the country, including Cebu, Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, Calabarzon Region, and Metro Manila.