First Gen stock jumps 5.7% on delisting talk

Lopez-led First Gen Corporation (FGen) has sparked investor sentiment after it disclosed plans to potentially go private.

- By GABRIELL CHRISTEL GALANG

Based on the Philippine Stock Exchange (PSE) update on Friday, Nov. 28, as of 12 p.m., Lopez-led First Gen Corporation (FGen) saw its stock price rise by 5.70 percent to P17.14.

This upward movement has likely been prompted by FGen’s openness to delisting from PSE, as reported by online news outlet InsiderPH on Thursday.

Juan Paolo Colet, managing director of Chinabank Capital Corp., believed that the energy firm’s stock is worth more than its current price, which supports delisting as an option.

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“First Gen has every reason to delist. The stock price has been undervalued for a long time, the public float is very low, and there's not a lot of trading liquidity,” he told the Manila Bulletin.

“After the majority sale of its gas business, perhaps the best use of its cash windfall is to give public shareholders an orderly exit via a delisting tender offer at a good price.”