Companies that go public in the Philippine are required to reserve 10% of their offering to small investors. Despite this, their historical take-up isn’t higher than 2%. According to the business.inquirer; as this is a serious problem, Philippine Stock Exchange Inc. plans to change this by using technology which should make it easier for small investors to participate in IPOs.
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EASy
EASy is the new web-based platform rolled out on June 3. 2019. EASy stands for Electronic Allocation System, which will allow LSIs (Local Small Investors) to subscribe to shares whenever there is an IPO. The way it works is by subscribing to a minimum board lot and purchasing IPO shares with the limit of P100,000.
Raon S. Monzon, a PSE president says that EASy could be the next big thing. He mentions that the process of buying IPOs before this platform was simply cumbersome. You had to fill up a subscription form, bring it to the broker’s office, and then make a payment at the kiosk. EASy is here to remove all of that.
How to Sign Up for EASy
Those who want to sign up for EASy should wait for the stock brokerage to confirm the account. The approval process won’t last long and when it’s done, the investors can participate in the LSI program, where they can buy and exchange IPOs. In the third quarter of 2019, PSE EASy mobile app will be launched.
The mobile app will let all the registered users use it but the registration must be done from your computer. Aside from the basic functions, you can submit LSI subscription forms or update your forms by adding or reducing shares.
The Bright Future for EASy
PSE noticed that most of their investors prefer trading online but that they are also hesitant to mobile apps. But, in their words, they’ll continue to leverage technology in order to make this process as easier as possible for LSIs.
