SEC okays Viva Com capital hike

The Securities and Exchange Commission (SEC) has approved the increase in authorized capital stock of Viva Communications Inc. (Viva Com), a movie and entertainment outfit owned by the Del Rosario family, from P50 million to P800 million.

Documents filed at the SEC show that P316 million out of the total increase has been subscribed and paid for in shares of stock and advances.

 “The additional paid-in capital resulting from the increase in capital will be used to wipe out the company’s deficit of P287.32 million,” Viva Communications said.

The equity restructuring is in preparation for Viva’s planned initial public offering (IPO) to acquire new technology.

Viva Com was formed in 1981 to consolidate the Viva Group of Companies’ – Viva Productions, Viva Artists Agency and Viva Video Inc.

Aside from being the premier provider of entertainment content for Filipino audiences, Viva Communications produces motion pictures, licenses archived film material, manages artists and distributes home video products in DVD and VCD formats.

Viva Communications is also the owner of the biggest library of Filipino films with nearly 2,000 Viva-produced and acquired film and television clips.

BDO Capital and Investment Corp. will serve as the lead underwriter for Viva Communications’ planned IPO.

Viva Communications has produced more than 400 films and television shows. It was the first to air game shows with foreign formats such as “Who Wants to be a Millionaire” and “The Weakest Link.”

Last year, about two percent of Viva Communication’s licensing revenues came from international sales. Its Filipino channel, Pinoy Box Office, is available in Europe, Japan, the Middle East and the US.