MANILA, Philippines — GMA Network Inc., the country’s second largest television network, has secured the approval of the Philippine Stock Exchange (PSE) to undertake its initial public offer that will consist of common shares and deposit receipts.
GMA Network will offer 91.35 million primary common shares and 91.346 million Philippine Deposit Receipts (PDRs) at a price range of P7 and P8.50 apiece, sources said.
The offering is supposed to take place next month.
PDRs are shares that have economic benefits such as cash, stock or property dividends, but entail no voting powers. It also grants the right to its holder to the delivery or sale of a corresponding amount of common shares. PDRs are proposed as a tool to generate interest among institutional investors.
In documents earlier filed with the Securities and Exchange Commission (SEC), GMA Network said it planned to offer 91.346 million common shares at roughly between P7 and P8.50 apiece.
On the other hand, GMA Holdings Inc., a new corporation organized in the Philippines to issue PDRs, planned to sell 822.115 million deposit receipts.
GMA Network and GMA Holdings are two separate companies.
GMA Network is currently owned and controlled by three major shareholder blocs—the Duavit group, which owns 35 percent; the Jimenez group, with 35 percent; and the Gozon group, with 30 percent.
The underlying common shares in the PDR issue will be owned by GMA Holdings, the PDR issuer. Although holders of the PDRs will enjoy economic rights, they will not have voting rights with respect to the underlying common shares. Elizabeth Sanchez-Lacson