Nextstage resumes trading Tuesday

MANILA, Philippines - Shares of dormant listed firm Nextstage Inc. will resume trading at the local bourse starting Tuesday following its compliance to the minimum public ownership rules and reportorial requirements.

The lifting of the five-year trading suspension would also allow the company to reorganize and enter into several acquisition deals, Nextstage said.

The Philippine Stock Exchange (PSE) in a memorandum said Nextstage has already increased its public ownership level to 10.15 percent, higher than the required 10-percent minimum public float.

Nextstage also complied with the structured reportorial requirements, PSE added.

Trading of the company’s shares were suspended on May 16, 2008 given continued non-compliance with PSE’s requirements like the submission of audited financial reports.

“The static threshold on the price of Nextstage shares will be lifted on the resumption of trading of the company’s shares on July 9,” PSE said.

The static threshold or trading band limits the single day gain or drop of a stock’s price to 50 percent of the previous closing price. But the trading band is lifted on the day of resumption of trading for stocks that have been suspended for at least one year.

Nextstage said it is preparing for its revitalization through acquisitions. “Nextstage’s management has started discussions with various investment groups to raise new capital and will prepare for a public offering to raise more funds for its investments and holdings.”

“After the suspension is lifted, the company will finalize negotiations for the share swap with e-commerce corporations,” Nextstage added.

Specifically, Nextstage plans to secure up to 100 percent of digital signage firm In-store Digital Display International Inc., a minimum of 40 percent of digital marketing firm Snapworx Digital Inc. and a minimum of 19 percent of mobile phone marketing company Mobext Inc.

In May, Nextstage announced its plan to transform itself into a holding company for its various businesses in Southeast Asia and Japan.

Emerging markets, particularly those in Southeast Asia like the Philippines and Indonesia, are expected to post robust consumption-driven economic growth despite continuing weaknesses in advanced economies.

To date, Nextstage has three subsidiaries: smart card system operator Mondex Philippines Inc., software developer Infinit-e Asia Inc. and outsourcing and technology provider Technology Support Services Inc.

Nextstage was originally incorporated in 1964 as Pacific Cement Co. Inc. to engage in the manufacture and trading of cement and related products. It changed its name to Pacemco Holdings Inc. and its corporate purpose to that of being a holding firm in 2000. That same year, Pacemco merged with Nextstage.

In January, PSE suspended the trading of numerous firms including Nextstage because of failure to meet the required minimum public float.