Coconut in a Not So Giant Nut - My First PSEAsy IPO

"niyog" by foCusRinG is licensed under CC BY-SA 2.0

It was my first time using the platform of PSE for LSI or local small investors, PSE EASy, which stands for Philippine Stock Exchange Electronic Allocation system.

For those who want to know more about IPO or Initial Public Offering in Philippines setup, I’ve written previous articles about it so you can check it out but it is based on old system of LSI wherein you need to manually fill up forms and maximum subscription per individual is 25K Pesos.

The first IPO that was offered using PSEASy is KPPI, Kepwealth Property Philippines, Inc. A property leasing and investment company primarily based in Cebu. Unfortunately, I don’t have funds to try the platform for the first time but I already registered and linked by broker to my PSEASy. KPPI had a good listing day followed by another sets of ceilings.

For the second IPO of the year, I was able to subscribe and was given allocation. Maximum LSI subsciption which started since IPO of Shell Philippines is 100K.

Based on the propectus, Axelum Resources Corp. or AXLM valuation is price to earnings ratio of 20x which is at the same level with similar industry. The size of the IPO is 4 Billion and the final price, which was reduced twice, is 5 pesos per share. It was offered from September 24 to September 30, 2019. The listing day however is not much of a success dropping 16% lower than the IPO price before settling at closing of 4.69.

The same day of listing, there was a press release of the company closing a deal with a skin care product producer. Will it recover the next day or in the near future? That remains to be seen. Goodluck to us!

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