AllDay Marts hits ceiling in debut, gives investors “more manny”
AllDay Marts [ALLDY 0.90 50.00%] wasted no time in smashing into the PSE’s 50% ceiling, which is a limit that the PSE puts on a stock’s ability to rise in a single day. The technical name for this is the “upper static threshold”, and it is calculated daily as 1.5x the stock’s previous close.
For IPOs, the ceiling is 1.5x the IPO offer price, which in ALLDY’s case was P0.60/share.
Hitting the ceiling doesn’t prevent any further trades from happening, it just sets a hard limit on how high the price can go on that day. ALLDY’s first trade of the day was at P0.90/share, and another 450 million shares were traded at that same price.
All eyes will still be on ALLDY today to see if it can repeat its performance, but it will need to climb to P1.35/share in order to hit the PSE upper static threshold a second time (P0.90*1.5).
MB BOTTOM-LINE
The puns were flowing like wine on Twitter: “money villar”, “easy manny eh”, “Manny Christmas!”. Traders and investors alike were in a great mood. The “[emergency]” press release from ALLDY quoted Manny Villar as saying that the “brisk market uptake” of ALLDY “validates this price”, and I’d have to agree with him, if the confirmation was on whether traders and investors thought the price as low enough to see upside.
From ALLDY’s perspective, from PNB Capital’s perspective, and the Villar Family’s perspective, I think that the brisk market uptake maybe reveal a misread of the market’s demand for ALLDY’s stock, especially if we see another large increase today or a second consecutive ceiling hit.
That would suggest to me that whatever demand testing was done pre-IPO was not accurate, or that the group could have applied a greater percentage of the IPO issuance to retail investors and received a higher valuation.
All that said, I don’t think there are too many people shedding a tear for the money the Villars may have left on the table; they’re probably too busy cruising Lazada and Shopee, pockets heavy with ALLDY IPO gains. Let’s see what happens today!
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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