MEDIC, The Worst-Performing IPO in the Philippines in 2021

Critical equipment may have lost its appeal to investors less than two years after the first case of COVID-19 was identified in the Philippines. Consequently, when the Villar family-owned Medilines Distributors Incorporated (PSE: MEDIC) conducted its IPO on 4 November 2021, as the second to the last IPO of the year, it became the worst performing IPO in 2021. On the first day of public trading at the PSE, its price declined 30.0% to a day low of P1.61 from its IPO price of P2.30 per share.

Although the Co family's newly acquired and renamed The Keeper Holdings, Inc. (PSE: KEEPR) performed worse, plunging 31.3% on its first trading day on 19 November 2021, the market offering was a Follow-On Offering, which technically an IPO. KEEPR is majority (77.54%) owned by Cosco Capital Inc. (PSE: COSCO), the family's publicly listed investing holding company. Its public ownership percentage is 20.82% as of 18 November 2021.

(Sources: PSE Edge)

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PNB Distributes Stock Dividends on an Untraded Company

Publicly listed Philippine National Bank (PSE: PNB) disclosed on 28 December 2021 the distribution of stock dividends representing shares of an untraded holding company Philcomsat Holdings Corporation (PSE: PHC). PNB shareholders before 13 May 2021 will receive 0.156886919 shares of PHC for every 1 share of PNB held. However, records in PSE Edge indicate that PHC has not been traded since 4 January 2021. The company also has not declared any dividend at least in the last fiscal year. This means that PNB investors will be effectively buying into PHC without being able to sell these shares or receive any PHC dividend from it. In PHC’s 2020 Annual Report (SEC Form 17-A2020), PNB is not among the top 20 stockholders of PHC, indicating that these shares might have been accumulated by PNB from the conversion of PHC loan with PNB because it is unlikely that PNB bought it from the stock market in the last 12 months. (Sources: PSE Edge, PHC SEC Form 17-A2020)

Iberdola Is Entering Asia through the Philippines

IBERDROLA, the world’s second-largest wind power producer, has signed a deal to form a consortium that will develop offshore wind power in the Philippines. It is also the largest offshore wind energy provider in the United Kingdom. Iberdrola has a development presence in three continents – Europe, North America, and South America. The Philippine project will provide its foothold in Asia. The company has subsidiaries in France, Germany, Italy, Portugal, and the UK (Scottish Power) in Europe; the USA (Avangrid) in North America; and Brazil (Neoenergia) in South America. The Philippine project is a 3.5-gigawatt offshore wind farm somewhere in a still undisclosed sea in the country. Although the eventual joint corporation is still undisclosed, two other members of the consortium are Filipino-owned Triconti ECC and Swiss-owned Stream Invest Holdings AG. Triconti ECC is a wholly-owned subsidiary of the Windkraft Group, the largest wind energy developer in the Philippines with a portfolio o

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