RL Commercial REIT releases stability report from first week of trading

The PSE’s newest REIT, RL Commercial REIT [RCR 6.45 ?0.15%], conducted its IPO on Tuesday of last week. It started trading with a stability fund with a little over 305 million shares in ammunition to help prop up the price should it dip below the P6.45/share offer price, and according to this report, the stability fund manager only needed to use roughly 15 million shares of that fund in RCR’s first week to keep the price out of the red.

The stability fund will last until either its 305-million share ammunition stockpile is used up, or 30 days have passed (October 14th), whichever comes first.

MB BOTTOM-LINE

On the one hand, the stability fund only used 5% of its resources in the first week, which is traditionally when IPOs are their most vulnerable.

On the other hand, RCR’s price hasn’t been able to escape the gravity of its offer price yet for any sustained period of time, so the stability fund managers can’t take any trading day for granted just yet. Even yesterday, for a brief blip in time, there were a few million shares traded at the P6.44/share level.

The REIT is barely a week old, so we’ll probably just have to wait another week or so to get a feel for where things stand. Until then, there just doesn’t appear to be enough negative sentiment to truly challenge the resources of the stability squad.

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