Medilines Distributors, Inc. (MEDIC) earned the unenviable distinction of the \u201cWorst IPO in PSE History\u201d when its share price tanked 30% on its stock market debut last December 7, 2021, prompting \u201cdead on arrival\u201d and \u201cSomebody call a medic!\u201d jokes on social media and on the trading floor. The stock lost as much as 76.5% from its P2.30 IPO price when it reached a low of P0.54, but it has since recovered and closed this week at P0.77 per share.<\/p>\n\n\n\n
MEDIC\u2019s downward spiral eased after the company declared a cash dividend of P0.006168416 per share in May, which was followed by another cash dividend declaration of P0.0030842082 in August. In total, MEDIC has given out around P25-million in dividends, or 15% of its 2021 net income. The company\u2019s management doubled down on its efforts to enhance shareholder value by announcing a P100-million share buyback program this week, which triggered a one-day gain of 13.04% on the stock\u2019s price. <\/p>\n\n\n\n
The latest in the company\u2019s series of charm attacks on the market came mid-day Friday, when MEDIC sent out a press release that it will fast-track its expansion of its dialysis consumable product line. The company forecasts that this segment will see 43% revenue growth from last year\u2019s P197-million.<\/p>\n\n\n\n
MEDIC may be on our radar soon, but we\u2019ll wait and see for now. Many investors are still hurting from MEDIC\u2019s IPO, and while the company may be out of the ICU for now, there\u2019s still a long way to go for it to be considered a healthy investment option. <\/p>\n\n\n\n
Nonetheless, we acknowledge and take note of management\u2019s efforts to create value for its shareholders and to restore confidence in its stock. We give bonus points for the company\u2019s ability to give a positive spin on growing demand for dialysis products.<\/p>\n\n\n\n