The price of Concepcion Industrial Corp.’s (CIC) shares slumped by more than 3 percent during its official listing day at the Philippine Stock Exchange on Wednesday.
CIC, a supplier of air-conditioning and refrigeration appliances, saw its shares slumped to P25.15 a share during the market recess, which is 3.27 percent lower than its listing price of P26 apiece. Toward the end of the session, the price for CIC share settled at P25.85 a share, still down, albeit flat, by 0.58 percent.
In an interview with reporters after the company’s listing ceremony, Raul Concepcion, CIC chairman and chief executive officer, said that the company is not concerned about how its shares will perform in the stock market.
CIC raised P1.95 billion from its maiden share sale. This involved 74.97 million shares, which, according to Concepcion, were fully taken up.
Maybank ATR Kim Eng Securities Pte Ltd. was tapped by the company to be the international underwriter and book runner for the share sale, while Maybank ATR Kim Eng Capital Partners Inc. was the domestic lead underwriter and issue manager.
In a disclosure to the Philippine Stock Exchange, the company also announced that that together with Carrier Corp., its partner in Concepcion-Carrier Airconditioning Co. (CCAC), was in discussions with Midea on the formation of a joint venture.
The disclosure specified that the company and CCAC has just signed a shareholders’ agreement with Midea Electric Trading (Singapore) Co., Pte. Ltd., a wholly owned subsidiary of Midea and Concepcion Midea Inc.
Concepcion told reporters that the agreement with Midea Eletric will allow them to expand CCAC’s business to other white consumer goods that are still not part of its product offerings.
CIC is the eighth company to conduct its initial public offering this year after Philippine Business Bank, Asia United Bank, AG Finance Inc., Harbor Star Shipping Services, Travellers International Hotel Group Inc., Robinsons Retail Holdings Inc., and Del Monte Pacific Ltd., which listed by way of introduction.