UBS AG buys 60.435-M AllHome shares for ‘stabilization purposes’

UBS AG, a global financial services company, has bought around 60.435 million shares of AllHome Corp. to stabilize the share price of the newly-listed company.

In a letter to the Securities and Exchange Commission, UBS AG said its Singapore branch acted as a stabilization agent and purchased 60,435,800 AllHome shares at an average price of P11.4670 per share for a total of P693,017,318.6.

The letter was disclosed by AllHome in a regulatory filing submitted to the Philippine Stock Exchange on Tuesday.

The purchase of AllHome shares was for “stabilization purposes” for the week ending 11 Oct. 2019,” UBS AG noted.

“The stabilization agent is given permission to buy up to 15% of the offered shares once its market price falls below the offer price,” Philstocks Financial senior equity analyst Japhet Tantiangco said.

“Still, it doesn’t necessarily mean weakness on the part of AllHome ... At the same time, HOME was still able to close above its IPO (initial public offering) price last Oct.10 and 11 at P11.56 and P11.54, respectively. This shows that there is an upward bias for the share on the part of investors,” Tantiangco said.

Listed on the PSE main board, AllHome offered 1,125,000,000 shares, representing 30% of its total issued and outstanding common shares.

The company raised P14.9 billion from the sale of 1,125,000,000 shares and an overallotment option of 168,750,000 shares, making it this year’s largest IPO yet in terms of value.

The proceeds from the share sale will be used by the company to fund its capital expenditure and initial working capital for expansion and debt repayment. —VDS, GMA News