The Philippine Stock Exchange has lifted the floor price restriction on shares of Synergy Grid Corp. of the Philippines.
PSE introduced the floor price system to prevent share prices of listed companies from falling below a certain level.
“SGP has an ongoing follow-on offering with a bookbuilt price of P12 per share, below the lower static threshold [of 30 percent] based on the last traded price prior to trading suspension last May 31, 2021.
Hence, the exchange has determined the need to lift the lower static threshold while maintaining the upper static threshold on the resumption of trading of shares of SGP,” the PSE said in an advisory to the public.
The stock was last traded at P395.80 last May 28 after a share swap transaction between SGP and National Grid Corp.’s controlling shareholders shrank the listed firm’s public float to 0.25 percent.
Under the revised trading rules, only the lower static threshold shall be lifted until such time that the trades have been executed which will eventually be the basis of the floor price on the following day, the PSE said.
“This regulatory action would allow a market-determined price to be formed on the basis of actual trades by investors upon the resumption of trading of SGP shares,” it further said.
SGP is selling up to 1.15 billion shares, including overallotment option to boost its public ownership and remain listed on the local bourse. Listing of the new shares is on November 10.
The IPO is expected to generate as much as P13.85 billion, which SGP will use to subscribe to nonvoting preferred shares that will be issued by National Grid Corp. of the Philippines, the country’s only power transmission company.