Headlines Property

PNB spends P2.23B to keep Injap Sia’s DDMP from succumbing to selling pressure

Philippine National Bank bought P2.23 billion worth of DDMP REIT shares under its price stabilization option amid massive selling pressure in its first four days of trading.

PNB Securities president Manuel Antonio Lisbona said it repurchased 594.248 million DDMP at P2.24 from its initial public offering debut on March 24 to March 29. DDMP’s IPO price was pegged at P2.25 each.

The lead underwriter bought the bulk of the shares or 476.38 million were acquired on March 29 alone.

DDMP traded between P2.11 and P2.40 during the first four trading days with net foreign selling of P523 million during the same period.

Due to poor demand, Lisbona said it would not be exercising the over allotment option for the company’s IPO covering up to 594.25 million shares.

If exercised in full, the over allotment could amount to P14.7 billion based on the IPO price of P2.25 per share. The base offer consisted of 5.94 billion shares.

The over allotment option enables to sell additional shares at the offering price in case of strong demand for the securities. Such an option will also allow the underwriter to stabilize the issue price.

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