From an offering price of P1.75 per share, SQL ended its first trading day at its highest price of P2.60, leading 28 other gainers.
SQL’s successful listing, however, failed to make an impact on the stock market as a whole, with the main index slipping 5.51 points to a nine-month low of 1,376.36.
SQL transactions amounted to about P400,000 out of a total turnover of P330 million. The equities market remained lethargic as investors stayed on the sidelines ahead of Monday’s first State of the Nation Address (SONA) by President Arroyo, which is seen as a litmus test of her administration’s political and economic reform agenda.
The Phisix stood at 1,287.85 last Oct. 31, 2000 before vaulting 212.26 points or 16.5 percent to 1,500.10 on Nov. 6 as mounting pressure for then President Estrada’s resignation resulted in a series of top level resignations and defections in Malacañang.
Aside from leading the advancers, SQL also had the distinction of being the first company to be listed at the Philippine Stock Exchange this year and inaugurating the third board or the Small and Medium Enterprise (SME) board.
The SME board was put up over a year ago to serve as a "nursery market" for young and small companies but with high potential for growth. To qualify for listing at the SME board, companies should have an authorized capital of P20 million to P100 million; a paid-up capital of at least 25 percent; and at least a two-year record of positive net operating income, among others.
The Makati-based IT company offered four million of its unissued common shares during its initial public offering (IPO). As of Dec. 31, 2000, SQL had total assets worth P41 million. It has an authorized capital stock of P20 million divided into 20 million shares at P1 par value, out of which P16 million worth are issued and outstanding.
The company provides complete information solutions including licensing of computer software; consulting and training services; technical maintenance and updating of software programs; and research and development.
Approximately half of the estimated P6-million proceeds from the IPO will be used to develop and enhance Phoenix, its enterprise software package for non-life insurance companies while a fourth will be channeled into research and training costs for the development of new business initiatives.
The company intends to develop the platform for venturing into the development of "business intelligence" templates for various industries, business online (or service as an application services provider) and e-business consulting.