GMA Network gets SEC okay for P3-B capital increase

The Securities and Exchange Commission (SEC) has approved the increase in the authorized capital stock of leading broadcasting firm GMA Network Inc. to P5 billion from P2 billion.

The capital hike is intended to cover the company’s planned stock dividend declaration.

The increase in capital stock of P3 billion has been subscribed and fully paid via stock dividends payable to stockholders of record as of Oct. 11 this year.

The new capitalization will consist of P3.5-billion worth of common shares with a par value of P1 and P1.5 billion worth of preferred shares with a par value of 20 centavos.

The amount of P3 billion consisting of 1.5 billion common shares with a par value of P1 and 7.5 billion preferred shares with a par value of 20 centavos each have been subscribed to by stockholders and have been fully paid for by means of stock dividends.

GMA plans to offer 20 to 30 percent of its stock to the public by the first or second quarter of 2006. It recently tried to undertake an initial public offering (IPO) but misunderstandings among the three major shareholders of the company eventually led to the shelving of the IPO until 2006.

At that time, the company expected to generate around P9 billion in proceeds from the maiden offering of its shares.

GMA has set aside P1 billion this year for the continued expansion of its regional operations and the establishment of two state-of-the-art studios to house more programs.

The network aims to broaden its presence nationwide as it gears towards dominating provincial programming after unanimously leading in TV viewership ratings across Mega-Manila. New relay stations will be built in Negros Island and Iligan City, while relay stations in Dumaguete, Cabarroguis, Jolo, Virac, Roxas and Leyte will be relocated to increase reach.

Aside from this, GMA has lined up at least four movies this year to capitalize on the success of its telenovelas.

GMA began overtaking its main rival in total day ratings since December of 2003 but it began to decisively lead in ratings across all time blocks in September 2004 including the most coveted early primetime block.