Puregold down 12% on listing

The share price of Puregold Price Club Inc., the country’s first purely retail stock play, faltered by 12 percent during the company’s trading debut on Wednesday given the volatility in global financial markets.

Still, top company officials committed to boost profit expand the firm’s geographical footprint and build a reputable image moving forward. For 2011, Puregold expects to book a net profit of P1.6 billion, equivalent to 80 centavos in earnings for share. Comparative net earnings last year amounted to P750 million.

Overall business for 2012 would likely be about 25 better than this year’s, Puregold president Leonardo Dayao said in a briefing after the listing ceremonies.

Puregold shares closed at P11 each, falling from the initial public offering price of P12.50. Dayao, however, was unfazed.

“The main objective is to list and that was accomplished today. Pricing is only incidental as it’s driven by the market situation,” said Roberto Juanchito Dispo, president of First Metro Investment, one of Puregold’s domestic lead arrangers.

“October is really not the best time for the markets in general and what more for IPOs, especially this one which was priced at a premium to other stocks in the market PE-wise,” said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.

During the listing ceremonies, founder and controlling shareholder Lucio Co took the opportunity to refute allegations of smuggling that had come out in the media prior to his company’s IPO.

“So much has been said about my person. My name was dragged sporadically in some irregularities I did not commit. I was conveniently painted as a villain,” Co said. “The upside is, I guess my name is full-color and therefore, newsworthy.”