Securities market regulators — the Securities and Exchange Commission (SEC), the Philippine Stock Exchange (PSE) and the the Philippine Depository & Trust Corp. (PDTC) — are working together to probe the trading of unissued and unlisted shares of Abra Mining and Industrial Corp.
This follows after the listed company’s shares were discovered to have an excess amount of shares traded in the PSE compared to what the company had declared as issued and outstanding.
A review by the PSE of Abra Mining disclosures and data from PDTC showed the number of fully paid issued and outstanding Abra Mining shares exceed the number of the company’s listed shares, violating PSE rules that all fully paid issued and outstanding shares should be applied for listing.
The number of the company’s shares lodged with PDTC meanwhile exceed the number of the company’s listed shares, violating the PSE’s rule that only securities approved for listing should be lodged with PDTC for trading.
The number of Abra Mining shares lodged with PDTC also exceed the number of the company’s issued and outstanding shares, which indicate that shares not yet reflected in the company’s books have been lodged with PDTC and are being traded, “in contravention of the provisions of Republic Act No. 11232, or the Revised Corporation Code of the Philippines (RCC).”
The SEC said preliminary investigation showed that Abra Mining shares lodged with PDTC as of Feb. 16, 2021 is in excess of 186.01 billion shares compared to the 72.95 billion shares the company has listed with the PSE.
In its 2019 audited financial statements, Abra Mining only reported an issued and outstanding capital stock comprising 99.29 billion shares.
Abra Mining was ordered to submit its proposed actions to address the discrepancies in its issued, outstanding, listed and lodged shares.