Kepwealth Property Philippines Inc. surged by as much as four times its initial public offering price in its first week of trading, making it the biggest-popping IPO in decades.

Kepwealth Property Philippines Inc. surged by as much as four times its initial public offering price in its first week of trading, making it the biggest-popping IPO in decades.

KPPI soared 42% to P8.15 per share in its listing debut on rumors of a possible backdoor listing of the Sogo motel chain, which has a total of 39 branches nationwide.

The company denied speculation that it would be the vehicle for the backdoor listing of Sogo hotel.

The stock traded as high as P27.35, more than 4 times its maiden offering price of P5.74 before closing the week at P15. Its market capitalization jumped to P3.68 billion.

After skyrocketing for four days since its listing, the stock plunged 28% to P15 Friday.

KPPI insists it is “not aware of any material information, corporate act, development or event that has caused the unusual price movement in the trading of its shares.”

“We cannot overemphasize the fact that the company is not aware of any material information that would explain how the stock price has gone up from the IPO price of P5.74 to P18.32 as of the end of trading day, said Servillano Jose Dunglao, chief information officer and compliance officer of KPPI.

Analysts, however, said the price rally has gone too far, making the stock too expensive to be a worthwhile investment.