The Keepers FOO lists tomorrow
The stock will resume trading tomorrow morning when all 3 billion of the follow-on offer (FOO) shares will be listed. The Keepers [KEEPR susp] has been suspended since July 8 (over four months), and the last time anyone traded in this stock, it was called “Da Vinci Holdings”, its ticker symbol was “DAVIN”, and people were paying P2.95/share for it. Considering that the FOO was priced at just P1.50/share, and it will increase KEEPR’s outstanding shares by over 26% when it lists tomorrow, the first traded price is likely not going to be anywhere close to P2.95, which was technically the stock’s previous closing price.
Just like with Synergy Grid [SGP 15.76 1.01%], the PSE has lifted KEEPR’s “Lower Static Threshold” to permit trading to go ahead, under the assumption that the market price (or part of the first day’s trading range) for the shares could be more than 30% lower than P2.95/share.
MB BOTTOM-LINE
Who knows what the actual price will be; we can compute what the price “should” be based on the historical data and FOO details, but that doesn’t mean that “the market” -- the millions of Filipinos that buy and sell stocks -- will care. The price is only what someone will pay for it. Will the volume of KEEPR shares traded tomorrow be as impressive as what we saw with SGP when it finally listed, or will the lower profile of this issuance come with a lower profile of activity? I know many investors who are very upset with Lucio Co for how he has conducted this entire backdoor listing transaction with KEEPR, and I know just as many who are excited for the opportunity to invest in a “pure-play” alcohol stock. I didn’t get any allocation from COL (weird, right? haha: check out my informal analysis of brokers and allocations here), so I’m just an observer with no skin in the game. But I’ll definitely be watching at 9:30am!
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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