Apollo Global Capital FOO shares list, stock drops 4%

While the Apollo Global Capital [APL 0.11 4.39%]FOO happened a few weeks ago, where APL sold an additional 12.35 billion common shares at P0.08/share, the FOO shares were not actually “listed” until yesterday. There are a lot of technical things that happen behind the scenes when stock is listed, but for retail traders, the important part to know is that the listing date is when the new shares are officially added to the PSE’s system.

On the listing day, the new shares are counted toward APL’s issued and outstanding shares (meaning that they now officially impact percentage ownership levels), and the people who bought the shares will see the shares in their brokerage accounts and be able to make trades with those shares. The number of FOO shares represents only around 4% of APL’s total issued and outstanding shares.

MB BOTTOM-LINE

It seems like a few FOO buyers felt like it was a pretty great time to make an easy 25% gain by immediately selling their P0.08/share FOO shares for P10.00 on the open market. The 1.6 billion shares traded in the largest volume traded in APL since way back on April 15/16, when the company announced that it had “effectively deployed and positioned” the MB Siphon 1 vessel that it was using to conduct its offshore mining operations, and that the vessel had “completed all the necessary offshore commissioning stages and necessary permits to start production”.

The stock is down 52% since then, but probably more because the company still hasn’t mined anything from its tenement area than because of the marginal dilution that the tiny FOO might have caused. Will the company be able to start production now that it has raised enough money to invest in the corporation that owns the MB Siphon 1 vessel? Are there complications relating to the ownership of this vessel that has prevented the company from staying true to its disclosures, and if so, why haven’t these complications been disclosed?

My feeling is that all of these questions will probably go away once the ship starts doing the actual work and we can see some revenue, but until then, investors are just left to wonder on their own about what’s actually happening.

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