Transpacific Broadcast seeks SEC nod for IPO

Formally signifying its interest to offer its shares to the public, Transpacific Broadcast Group Inc. (TBGI) filed with the Securities and Exchange Commission yesterday its registration statement covering the sale of 69.678 million new common shares.

TBGI is controlled by businessman Arsenio T. Ng, whose interests range from healthcare services to real estate development.

Based on documents submitted to the SEC, TBGI expects to raise between P70.5 million and P90.5 million from its initial public offering which shall be underwritten by RCBC Capital Corp.

Accounting for 33 percent of the company’s common stock, the shares will be sold at a price ranging from P1.14 to P1.48 per share.

TBGI has earmarked 10 percent of the entire IPO for local small investors in compliance with securities rules.

Proceeds from the offering will be used for marketing promotions, working capital requirements, and equipment acquisition.

"Our corporate mission is to provide Internet connectivity of rural communities throughout the country to enhance delivery of education, health care and livelihood programs whether of government or other concerned institutions," Ng said.

While TBGI considers a diversity of sectors as its primary target markets, its initial marketing effort and equipment rollout will be focused on schools and hospitals, particularly in the rural areas.

In five years, TBGI expects to establish connectivity of 1,500 schools and 500 hospitals.

The company believes that the Philippine market can reach a potential of 40 million Internet users in 10 years based on the 50- percent market penetration in developed countries like Hong Kong, Japan, South Korea, Singapore and Japan.

The Philippines has a very low market penetration of 2.4 percent of the population using Internet.

Incorporated in 1995, TBGI holds a 25-year congressional franchise for commercial telecommunications and television broadcasting operations. It also has an approved provisional authority to transmit radio signals to satellites granted by the National Telecommunications Commission.

TBGI has so far installed a satellite dish in 30 locations which includes 26 schools mostly outside of Metro Manila and a few radio stations. Waiting in line for satellite connection are 35 schools in Luzon, 13 in the Visayas and 31 more in Mindanao.

TBGI provides digital uplink services for the audio/video media. It has service experience with international cable television program providers, Korea-based TV shopping network and five other foreign and local TV channels.

It recently installed a main hub of satellite transmitter-receiver to link the interactive broadband infrastructure for data broadcasting requirements of its educational and healthcare institutional customers.

The firm is strategically positioned as the private sector counterpart of government in the implementation of the information communication technology policy under the Medium Term Philippine Development Plan.

Aside from Ng, who runs the company, other directors of TBGI include Jose Corpus, Hilario T. Ng, and Paul B. Saria.