Golden MV Holdings Inc., long regarded as one of the most volatile stocks on the Philippine market, has suffered a staggering decline of up to 83% since trading resumed last week—wiping out more than $18 billion from the net worth of founder Manuel Villar Jr. and knocking him from his position as the country’s richest man.
The stock meltdown followed the lifting of a six-month trading suspension imposed after the company failed to file its audited 2024 financial statements on time. The plunge marks Golden MV’s steepest drop since its market listing. According to the Bloomberg Billionaires Index, Villar’s fortune has fallen to roughly $4 billion, placing him behind ports and gaming tycoon Enrique Razon.
In disclosures filed Friday, Monday, and Tuesday, Golden MV said it had no explanation for the stock’s collapse. A company representative also declined to comment.
Auditor Dispute Behind Suspension
The trading halt stemmed from a dispute between Golden MV and its external auditor regarding the valuation of a 366-hectare land parcel purchased from Villar for $93 million. The company had revalued the property to an eye-popping $23.3 billion, a figure the auditor refused to certify.
The revaluation previously triggered a dramatic rise in Golden MV’s share price, at one point sending its price-to-earnings ratio to over 1,000. Villar and related parties hold 89% of the company’s outstanding shares.
Before the suspension, Golden MV shares traded near ₱2,296. Upon reopening, the stock crashed toward ₱386, erasing the inflated value it held prior to the trading halt.
Massive Valuation Cut
The company’s unaudited 2024 report had shown nearly ₱1 trillion in net income, largely driven by the unrealized gain from the land revaluation. However, the final audited report slashed the land’s fair value from around ₱1.33 trillion to ₱52.74 billion, with a cost basis of ₱8.76 billion—bringing net income down to just ₱1.423 billion.
Golden MV’s market capitalization also nosedived from almost ₱1.5 trillion pre-suspension to ₱1.04 trillion on the first day of trading resumption, with further losses following the continued sell-off.
Investors Reassess Fundamentals
Market analysts note that founder-led companies often experience sharp corrections after long trading halts. In Golden MV’s case, investors appear to be reassessing the firm’s fundamentals and concluding that its pre-suspension valuation was significantly overpriced.
The controversial land parcel forms part of Villar City, a massive mixed-use development in southern Metro Manila that has drawn attention due to its rumored links to future casino and entertainment projects—factors believed to have fueled the speculative surge in its previous valuation.
Golden MV is known primarily for developing cemeteries, memorial parks, and affordable housing. It also serves as the master planner of Villar City, envisioned as a major new urban hub in the south of the metro. #END
Source: Bloomberg
