Monday, December 10, 2012

Calata Corporation Supports Planned Reforms for Capital Market

The newly listed Calata Corporation gained a market cap of 4B pesos earlier this year thanks to the outstanding shares. However, during the trading days of the corporation, the stock prices underwent a fluctuation where the shares reached P24 per share but declined to as low as 32 percent along the way. This movement alarmed the corporation’s CEO, Joseph Calata, who immediately called the Securities and Exchange Commission (SEC).

The SEC worked carefully and quietly which was why the investigation moved swiftly. The investigation only lasted for four months where the SEC were able to determine those involved in the manipulation as well as clearing the Calata Corporation claiming that the firm has no involvement in the allegations.

The SEC probe proved that our decision to seek the help of the regulators was both wise and right.
- Says Calata in an interview.

Calata also stated that the SEC is now in a perfect position to put more reforms in place based on the lessons from the experience of Calata Corp. He claimed that such reforms are needed in order to protect the reputation of companies listing in the stock exchange and encourage more entrants into the capital market.

Since the issue has already been "put to rest," Calata Corporation can now focus on its expansion program where they plan on increasing the number of its outlets to about 250 using the proceeds from the initial public offering.