By Ashley Erika O. Jose, Reporter
THE LISTING of over 15 billion shares by flag carrier Philippine Airlines (PAL), operated by PAL Holdings, Inc., on the stock exchange may spur investor interest as it is expected to improve the company’s market visibility, according to analysts.
“This move reflects a key milestone in PAL’s restructuring efforts and demonstrates its intent to stabilize and strengthen its financial base,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
While this move may not directly spur operational growth for the company, it could provide liquidity for creditors and bring focus to PAL’s shares at the local bourse, Mr. Arce said.
“The large number of shares entering the market might suppress prices temporarily due to selling pressure, especially if creditors offload their holdings quickly,” he said.
According to Mr. Arce, the trading opportunity is expected to attract “value-focused” investors or those banking on PAL’s turnaround trajectory.
“Overall, while there might be short-term volatility, this listing could bolster long-term investor interest by improving liquidity and transparency,” he said.
In its listing notice to the stock exchange last week, PAL Holdings, Inc., the operator of Philippine Airlines, said it would list over 15 billion common shares on Jan. 27 at the stock exchange.
These shares were just being listed and were already issued back in 2021 and accounted for against PAL’s outstanding shares, Mr. Arce said.
“Most of these shares were issued in 2021 during PAL’s bankruptcy restructuring, with Lucio Tan’s Buona Sorte Holdings and 46 creditors, including major entities, receiving shares. These listings will potentially lead to significant selling pressure as creditors might cash out to recoup their losses,” Mr. Arce said.
According to its notice, PAL Holdings listed 15.24 billion of its shares, of which about 5.04 billion shares belonging to the creditors will be tradable while the remainder have a lock-up period of 180 days.
“[This is a] positive step, [and] will improve share liquidity and share price discovery, one that is more reflective of company growth potential and inherent fundamentals,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.
At the stock exchange on Tuesday, shares in the company closed unchanged at P5.15 apiece.
