Quick Take: CNPF's deals and 1 more market update
Century Pacific [CNPF 25.00 3.7%; 286% avgVol] [link] reported that its parent, Century Pacific Group (CPG), sold a 3% stake in CNPF by way of private placement overnight at P24.60/share for a total sale price of P2.8 billion. CNPF said that the transaction was oversubscribed, and was only priced at about a 5% discount (which it referred to as “tight”) because of all the interest from “high-quality long-only international and domestic institutional investors”.
MB Quick Take: CPG said that it was raising money to take advantage of “opportunities at the holding company level”, and that it does not foresee selling any more CNPF shares at this time. It remains the dominant investor with a 66% stake. A private placement is just a sale of shares off of the exchange. In this case, the buyers didn’t purchase through a brokerage like a regular investor, they purchased as a syndicate through a bank/brokerage. They’re sometimes just a sale to a single buyer, like when Dennis Uy companies sell to other Dennis Uy companies in the dead of night, or they’re larger and more complicated arms-length sales that require a full pricing and sales process to complete. This one was the latter.
Alternergy [ALTER 0.99; 15% avgVol] [link] disclosed that its Chairman, Vince Perez, bought a small amount of ALTER shares last week. He purchased 169,000 shares over three days for a total spend of P166,190 at an average price of P98.33/share.
MB Quick Take: That’s honestly not a lot, but ALTER IPO buyers are probably happy to see any signs of life here since the stock is down over 23% since its late-March listing at P1.28/share. There’s a lot of free float available for the ownership group to buy up ALTER shares “on the cheap”, and the ownership group has (so far) put its money where its mouth is by running that all-primary IPO, but it’s unreasonable to expect ownership buying to make up that difference. It’s a good sign, but it’s not the savior.
--
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.
- Latest
