SQL emerges as market favorite

Information technology (IT) firm SQL *Wizard has become the clear favorite at the stock market as its shares continue to zoom, forcing the Philippine Stock Exchange to implement a trading halt as its price touched the upper trading band limit of 50 percent yesterday.

SQL shares – which were offered at an initial price of P1.75 each – opened strong at P5.50 yesterday, from a closing quote of P3.90 last Monday. It reached a low of P3.55 and hit a high of P5.80 by mid-trade, causing the temporary suspension. At the end of the day, it closed at P4, or 1 centavos higher.

The PSE has set an automatic halt in the trading of any particular stock once its price increases by 50 percent or decreases by 40 percent within the day. In only its third day of listing, SQL shares have become the clear market favorite, besting the blue chips and the speculative second- and third-liners.

The SQL listing last Friday marked several firsts in the exchange’s history: it is the smallest initial public offering (IPO) with gross proceeds of just P7 million; it started trades in the third board of the small and medium enterprise (SME) board, which is reserved for smaller capitalized companies; and it was the first listing at the PSE this year.

In a classificatory letter for the PSE, SQL said it is not aware of any information which could have the unusual movement in the trading of its shares. But it added that since the stock was freshly listed, "it is therefore possible that the market is still determining the proper value of the said shares."

On its first day of trading, SQL opened with a bang as its shares topped the gainers’ list, advancing by 48 percent on its stock market debut. From an offering price of P1.75 per share, stocks of SQL ended its first trading day at its highest price of P2.60.

By Monday, demand for SQL shares heightened and its price vaulted exactly 50 percent at the close to P3.90, topping the gainers’ list for the second consecutive session.

The Makati-based IT company offered four million of its unissued common shares during its IPO. As of Dec. 31, 2000, SQL had assets worth P41 million. It has an authorized capital stock of P20 million, divided into 2 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.