Solar Philippines ends SRO with full take-up of shares
Solar Philippines [SPNEC 1.56 0.65%] [link] disclosed yesterday that all of the 1,875,649,995 SRO shares, worth P2.8 billion based on the P1.50/share price, were sold to SPNEC shareholders in the first and second rounds of the stock rights offering (SRO).
The full take-up of shares spared SPNEC’s parent company from having to exercise its undertaking to purchase leftover shares. SRO buyers will receive the shares in their accounts on the morning of September 15th, when the shares will be listed and available for trading on the PSE. When that happens, SPNEC will have 10 billion shares outstanding.
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While the justifications for this SRO have shifted over the months since the company’s IPO, there is some newsworthiness to how willing SPNEC shareholders were to defend their positions by snatching up additional shares. SPNEC’s share price hovered around P1.66/share during the offer period, making the SRO offer price of P1.50 about a 10% discount.
The market price has steadily melted since the close of the offer, with the shares closing yesterday at P1.55/share, and the SRO then representing only a 3% discount from the market price. What will the market price be on September 15th, when the shares are eventually listed? It’s going to be interesting to watch the volumes on that day and those that follow to get a better sense of the conviction of the SRO buyers. Are they in it for the long haul, or just for a quick flip?
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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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