MARKET players warmed up to Raslag Corp. after their disappointment over its market debut last week despite promising prospects, analysts said.
A total of 439 million Raslag shares worth P927.33 million were traded between June 6 and 10, data from the Philippine Stock Exchange (PSE) showed. This made Raslag the eighth actively traded stock last week.
The renewable energy (RE) firm closed at P1.82 apiece on Friday, slumping down 9% from its initial public offering (IPO) of P2.00 per share.
Marc Kebinson L. Lood, Timson Securities, Inc. head of online trading, said the company’s performance ended “slightly negative” as players in the local bourse expected the stock to rally.
“Heavy selling dragged the price below its IPO price, most likely due to disappointment that the stock did not reach its ceiling due to early profit taking by traders despite the company’s bright prospects,” Mr. Lood said in a Viber message.
On its first trading day of the week, Raslag’s share price went up by 2.5% to P2.05 apiece. The RE company listed 1.5 billion shares and accumulated P700 million from its IPO.
“ASLAG attracted significant fanfare in its debut on the local stock market, as investors warmed up to its solar power offerings, particularly the firm’s expansion plans it laid out in its prospectus,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message, referring to the company’s ticker symbol ASLAG.
PSE President and Chief Executive Ramon S. Monzon said in a statement last week the energy firm will elevate other RE firms’ portfolios in the local bourse. Raslag’s listing was deemed significant by Mr. Monzon as it pushes PSE’s advocacy for sustainability.
Profits from the offering will fund the equity portion of the 35.1-megawatt (MW) RASLAG-4 solar photovoltaic plant’s development and construction, and the pre-development work for RASLAG-5’s 60-MW solar plant, as well as other upcoming solar projects.
Raslag is a domestic renewable energy developer founded by Peter G. Nepomuceno in Angeles City, Pampanga, and Conrado D. Pecjo, the business development manager of Angeles Power, Inc.
The market analysts projected the energy company’s net income to grow as its Raslag-3 is aimed to operate this year.
Mr. Lood expects Raslag to post P140 million in net profits in 2022. This is roughly 20.5% more than the P116.22 million that the energy firm earned in 2021.
For Mr. Arce, the firm’s bottom line could grow by 29.1% to P150 million.
Last year, Raslag generated P291.76 million solely on sales of electricity, 26.3% lower than P395.88 million in revenues in 2020.
“Support may be pegged at P1.60 and resistance may be placed at P2.20,” Mr. Lood said.
“The stock has room to go down in the coming week, depending on the overall market sentiment, and will likely consolidate for a few weeks before reversing its trend to the north due to a positive business outlook,” he added.
Meanwhile, Mr. Arce forecasts resistance at P2.10 and support at around P1.80. — Ana Olivia A. Tirona
