Golden MV shares plunge 76%, wiping out Manuel's wealth by $1.6 billion, knocking him off the top spot for the Philippines' richest man.

Golden MV shares plunge 76% in just days after a six-month trading suspension was lifted, wiping out Manuel Villar's wealth by $1.6 billion and knocking him off the top spot as the Philippines' richest man.

November 18, 2568 at 12.52:XNUMX a.m. Bloomberg News reported that One of the Philippines' hottest stocks has plummeted in recent days, wiping out more than $16,000 billion in its founder's fortune. And it raises new questions about the unusual surge and sudden drop in the stock.

Golden MV Holdings Inc., a real estate developer It began declining on Thursday after regulators lifted a six-month trading suspension and continued to fall as of Tuesday morning, having plunged 76%, its sharpest drop since its listing.

The slumping stock price also knocked Golden MV founder Manuel Villar from his position as the Philippines' richest person. With his wealth falling to $5.6 billion, according to the Bloomberg Billionaires Index, Enrique Razon overtook him to become the No. 1 richest man.

Toby Allan Arce, analyst at Globalinks Securities & Stocks "When stocks resume trading, especially those linked to prominent businessman Manny Villar, investors tend to revalue them against fundamentals, and the market seems to conclude that pre-suspension prices were significantly overvalued," he said.

The regulator suspended trading in the shares in May after the company failed to submit financial statements due to a disagreement with its auditors. The main issue was the valuation of land that Golden MV bought from its founder for $93 million, which the company later revalued to $2.33 billion.

The deal comes after the company's stock price skyrocketed, sending its P/E ratio above 1,000, confusing the Manila financial community, with Villar and his associates holding a combined 89% stake.

In its 2567 annual report released last week, Golden MV said it had agreed to a new land valuation methodology, as proposed by external auditors, which approximates the price the company actually paid.

Golden MV develops and manages cemeteries, memorial parks and affordable housing. The company is currently developing a large-scale project called Villar City, which aims to transform several towns south of Manila into the capital's new hub. The land it acquired last year is a key part of the project.

refer : bloomberg.com

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