Is this another case of “What Manny Pangilinan wants, Ramon Ang will also try to get”?
This question emerges as reports regarding purported interest by Ramon Ang, president of conglomerate San Miguel Corporation (SMC), to acquire a 30% equity stake in GMA Network Inc. (GMA7) surfaced last week.
The tragic collapse of Top Frontier Investment Holdings Inc. (TFHI) during its initial listing last week highlighted one important stock trading lesson that most investors are still not aware of. That is, a stock’s Initial Public Offering (IPO) or introductory listing does not automatically translate to instant gains.
Most newbie stock investors have this notion that IPOs — or in the case of TFHI, initial listing on the Philippine Stock Exchange (PSE) by way of introduction — always result to profits.
With TFHI’s stock price dropping 44% on its first trading day and 58% total drop in just week — we now see that IPOs and initial listings may not necessarily be good investments.
Top Frontier Investment Holdings Inc. (TFHI), the single largest shareholder of conglomerate San Miguel Corporation (SMC) has secured approval from the Philippine Stock Exchange (PSE) to list its shares on the PSE next year.
Top Frontier Investment Holdings owns a major stake in SMC but, interestingly, the conglomerate SMC is also the biggest shareholder of Top Frontier.
