MANILA, Philippines - Bulacan-based agricultural firm Calata Corp. has lauded the ongoing probe by the Securities and Exchange Commission (SEC) into the unusual trading of its shares following its listing on the stock exchange last May.
Calata president Joseph Calata issued the statement following a recent announcement made by SEC chairperson Teresita Herbosa that she was pleased with the progress of the said probe.
The 31-year old Calata also cited the cooperation of stockbrokers who, according to Herbosa, had submitted the records of their trades involving the stock to SEC.
“The response of the various bodies overseeing the capital market to our request for an investigation has given us the assurance that the SEC will get at the bottom of this concern,” Calata said.
Calata said his firm asked the PSE to conduct an investigation on the unusual and fluctuating movement of its share price a few weeks after its P270 million initial public offering.
Shares of the agriculture product distributor surged by as much as 220 percent within a 14-day period to P24 each share from an IPO price of P7.50.
Calata said the request for PSE assistance “was a prudent measure intended to protect the integrity and reputation of the company”.
The company’s stock took a nose dive following reports it was under investigation by securities regulators for possible price manipulation.
The Capital Markets Integrity Corp., the private sector stock watchdog, had submitted to the SEC its findings presenting a “clear case” of stock price manipulation through dummies.
The SEC hopes to complete its investigation by the end of October. If it closes the probe with findings of any wrong doing, the SEC would file a complaint with the Justice Department, which in turn, would file criminal charges against those responsible.
Calata is the country’s biggest distributor of agro-chemicals, fertilizers, feeds and veterinary medicines.
In the first half of the year, Calata reported a net income of P59.22 million, up seven percent from the same period in 2011. Total revenues grew 40 percent to P1.17 billion, the highest ever recorded for a half year mainly due to more stable hog and poultry prices and increased market penetration.