Philippine broadcaster GMA Network Inc has set its listing price at 8.50 pesos for a public offer of common shares and depository receipts, raising a total of 7.76 billion pesos ($170 million) to fund expansion plans, market sources said on Sunday. The offer price was at the high end of a range of 7 pesos to 8.50 pesos.
GMA Network, the main rival of the country's largest media group ABS-CBN Broadcasting Corp , earlier said it planned to offer 91.346 million common shares to raise as much as 776.4 million pesos.
A newly formed company, GMA Holdings Inc, will issue on behalf of GMA Network and its existing shareholders 822.115 million depositary receipts also at 8.50 pesos each, one market source said.
Holders of the depositary receipts - to be offered to both foreign and local investors - will enjoy economic rights, but not voting rights.
Foreigners are not allowed to hold common shares in media organisations under the Philippine constitution. The firm has hired Deutsche Bank as sole global co-ordinator for the offering and ATR Kim Eng Capital Partners Inc as domestic lead underwriter. The domestic offer period is tentatively set for July 17 to 24, with a tentative listing date of July 31.
GMA Network posted net income of 1.97 billion pesos last year, 2 percent lower than the 2 billion pesos in 2005, partly due to an increase in the corporate income tax rate to 35 percent from 32 percent. GMA's consolidated revenues rose 12 percent last year to 11 billion pesos.
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