Premiere Entertainment mulls listing in South Korea

MANILA, Philippines - Premiere Entertainment Philippines (PEP), a publicly-listed company operating in the gaming, media and entertainment sectors, said it expects to generate additional funds and capital upon listing at the Korea Exchange (KRX).

PEP said it is currently pursuing its listing in South Korea, seeing the country as a potential place to attract new investors and gain access to fresh sources of capital.

If successful, PEP will be the first Philippine business to be listed in Asia’s fourth largest stock market.

The company has recently engaged the services of a leading South Korean accounting firm as its appraiser, to assess and conduct the valuation of PEP and its securities.

PEP pointed out that foreign companies that list in KRX generally see at least three- to four-fold or even a high of 25-fold boost from its stocks’ par value, offering an increased initial price.

Oversubscription,wherein stock demand is bigger than what is being offered, is also common among foreign companies listed in KRX, it added. 

Chinese manufacturing firm 3NOD Digital Group, the first foreign company to list in Korea, had a 25-fold increase from its 100 Korean won par value to an IPO price of 2,500 won.

Meanwhile, Hong Kong-based Cowell eHoldings also had a boosted IPO price of 2,000 won from its 126 won par value upon listing in Korea. Both companies have more investors wanting to buy shares than what was offered.

PEP said it hopes to achieve such benefits if it gets listed in South Korea, mainly because of the company’s business fundamentals, showcasing continuous revenue growth, and the popularity of gaming and entertainment in the country.

PEP chairman Jung Ku Lee expressed optimism regarding the project. “I am really pleased that all is going as planned with our KRX listing project. I believe that the success of this project will open new doors for PEP and at the same time allow foreign investors to take part in a growing Philippine corporation,” he said.

PEP posted P172.8 million in revenues for 2008, up from P600,100 the previous year. It plans to expand its businesses by creating new subsidiaries, operating mainly in the leisure sector.