Medilines Distributors (MEDIC) has plunged deeper to the bottom since making its debut in the stock market last week.
But its majority owner, Jojo Villar, and sole underwriter, PNB Capital, remain silent on what happened to the ill-fated initial public offering after puffing up the overvalued, government sales-dependent firm.
MEDIC closed at a new low of P1.41 on December 15 or 39 percent below its IPO offer price of P2.30 per share.
The stock has been in freefall since closing at the floor price of P1.61 on December 7.
Villar and PNB officials were seen enjoying their cocktails and small sandwiches after the listing ceremony on the trading floor and merely watched on the sidelines as the stock succumbed to massive selling from the opening to the closing bell.
Jojo, the brother of the richest Filipino Manny Villar, and PNB of bilyonaryo Lucio Tan have yet to issue a statement on MEDIC’s spectacular collapse after hyping the stock as 2.5 times oversubscribed.
A Bilyonaryo source said brokers were supposed to get 30 percent or 165 million MEDIC shares from the IPO but were only given a fraction of their orders.
The source said the bulk of the shares went to a government financial institution and persons close to the owner.
Some brokers and small investors have asked the Securities and Exchange Commission and the Philippine Stock Exchange to investigate MEDIC and PNB for failing to set aside a stabilization fund from the P1.9 billion raised from the IPO, including P632.5 million which went into the pockets of Villar.
A source said while MEDIC and PNB were not compelled to spend for a stabilization fund, they had the moral obligation to protect MEDIC’s shareholders after claiming that the stock was in high demand despite issues raised by brokers on high valuation.
“They couldn’t care less what happened to MEDIC shareholders after taking their money. That is not how a corporation should treat its partners,” the source said.