GMA-7 defies downtrend, jumps 23% in market debut
Broadcast firm GMA Network Inc. defied the general downtrend as its shares jumped 23 percent or P2 on their listing debut yesterday, closing at P10.50 each compared with its initial public offering (IPO) price of P8.50.
The company’s Philippine Deposit Receipts (PDRs), on the other hand, closed P2.50 higher at P11.
“I’m very happy with the way it’s developing. There’s no other reason for the successful listing of our shares but the strong performance of the company,” said GMA chairman and president Felipe Gozon in a briefing with reporters.
A total of 57.372 million shares changed hands yesterday valued at P561.81 million. GMA stocks managed to shine despite a letter-complaint filed Friday by former congresswoman Imee Marcos claiming that her family was the real owner of the block of GMA shares held by the Duavit group, which owns a third of the network.
“As far as we’re concerned, the claim is baseless, “Gilberto Duavit Jr., GMA executive vice president and COO, said, pointing out that his family has been a major shareholder of GMA since 1974. “All throughout these years, there has been no claims.”
Gozon, for his part, said: “This claim is against one of our shareholders. This has absolutely no impact on the financials and operations of the company.”
With a market capitalization of P28.33 billion, GMA become the fifth company to go public this year, raising a total of P7.76 billion.
Issue manager ATR-Kim Eng Capital Partners Inc. managing director Roberto Benares said GMA’s international offering was more than 29 times oversubscribed with orders worth $3.5 billion. The local offering, likewise, was 7.3 times oversubscribed with around 17,300 investors subscribing under the small investors program.
GMA offered 91.346 million primary common shares and 822.115 million PDRs issued by the network’s shareholders.
A PDR grants the right to the delivery or sale of one common share. Although holders of PDRs enjoy economic rights , they will not have any voting rights in respect of the underlying shares.
Such voting rights will, until exercise of the PDR, will be retained and exercised by GMA Holdings Inc., the selling shareholder.
Bulk of the total proceeds will go to the selling shareholders while P1.55 billion will go to GMA to be used to fund the network’s regional expansion program aimed at further broadening market reach and broadcasting capability in the provinces.
Other proceeds will be used to fund the construction of two new television studios which will open in May 2008.
Gozon added that the company expects its second quarter net profit to be higher than the first quarter’s P441 million.
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