Da Vinci Capital Holdings [DAVIN 2.95] is owned by Lucio Co and recently was converted into an alcoholic beverage-themed holding company by way of a backdoor spin-off of assets from COSCO Capital [COSCO 5.09 1.60%] to DAVIN. As part of this transformation, the company’s name was changed to “The Keepers Holdings”, and its ticker symbol changed from DAVIN to “KEEPR”. Those changes will be reflected on the PSE’s system starting on September 13 (Monday of next week), as will the change in par value of the stock from P0.023 to P0.10 per share. This increase in the par value of DAVIN stock is a “reverse stock split”, where instead of taking a single stock and splitting into several, DAVIN is taking 4.348 DAVIN shares and squishing them together into a single share of DAVIN (well, KEEPR, by the time it’s all said and done). Based on DAVIN’s last closing price of P2.95/share on July 7th (before it was suspended), the new price would be P12.82/share after the reverse stock split. Keep in mind, the change in par value doesn’t have any impact on the actual “value” of the share, as technically, each shareholder still owns the rights to the same proportional amount of the company as they did before the increase in par value. Owning 100 shares out of 1 billion is the same as 10 shares out of 100 million.
MB BOTTOM-LINE
With a suspension that is over two months old, I suspect that the retail investors who are still in this stock will just be excited to get back to active trading. All of these changes will take place on the same day that DAVIN’s follow-on offering will go on sale, though I suppose it’s more appropriate to refer to the FOO as relating to KEEPR’s stock rather than DAVIN’s. If you’ll remember, the FOO was required by DAVIN to raise its public float above the minimum threshold after the backdoor listing caused COSCO to nearly wipe out the public’s stake in the company.
The FOO will boost KEEPR’s float to just above the minimum threshold. The FOO shares are scheduled to be listed on September 28th, so it seems unlikely (unless I”m missing something) that the DAVIN/KEEPR suspension will be lifted anytime before then. Three weeks to go!
--
Merkado Barkada is a free daily newsletter on the PSE, investing, and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.