Stock finishes first day session at P2.11 vs IPO’s P1.41
Plastic compounds and pipes maker Crown Asia Chemicals jumped 50 percent to P2.11 in pre-opening trade and closed at that level on its debut on the Philippine Stock Exchange (PSE) main board on Monday amid the hype that surrounded the stock’s listing.
Shares of the Bulacan-based manufacturer were priced at P1.41 apiece in the stock’s initial public offering (IPO).
The IPO had drawn strong demand that resulted in the stock being four times oversubscribed, said Mariano Ocampo of Abacus Capital and Investment Corp., issue manager, arranger and underwriter for Crown Asia Chemical’s maiden offer.
Ocampo said the offer was purely covered by domestic retail investors and involved no foreign subscribers. Institutional investors accounted for only 1 to 2 percent of the total 158 million primary common shares offered.
Public ownership of the company now stands at 25 percent, he added.
Luis Limlingan, managing director at Regina Capital Development Corp., said the company may continue to enjoy local investor support during the week.
“Liquidity-wise, it has not really reached its trading potential because it already hit the peak [day’s limit] at P2.11. I think it would trade in a new high for tomorrow and throughout the week,” Limlingan said.
Despite the demand, however, the company remains in the “small cap” category, which makes it “hard for foreign investors to come in.”
“The free float at 25 percent is small but we think the price has room to appreciate,” Limlingan added.