Entertainment and content provider G.H.Y. Culture & Media Holding began trading on the mainboard of the Singapore Exchange (SGX) yesterday at 70 cents, some 6.1 per cent higher than its initial public offering (IPO) price of 66 cents per share.
As at 10.02am, the stock eased to trade at 66.5 cents, translating to a gain of about 0.8 per cent from the IPO price. With nearly 8.7 million shares having changed hands at that time, G.H.Y. was one of the most active counters by volume on the Singapore bourse in the morning.
G.H.Y. group chief executive and chairman Guo Jingyu yesterday said the listing enables the firm - which produces and promotes dramas, films and concerts in the Asia-Pacific region - to enhance its profile both in Singapore and abroad.
G.H.Y. sold 21.7 million shares priced at 66 cents apiece as part of its listing on the SGX.
The offering comprised 18.7 million placement shares and a public offer of three million shares.
The public offer closed at noon on Wednesday. The firm on Thursday evening reported that it received applications from both retail and institutional investors for 16 times the number of shares available in the IPO's public tranche.
There were 1,402 valid applications for a total of 48.1 million shares under the public tranche.
Meanwhile, for the placement, G.H.Y. received indications of interest for some 160.4 million shares with a total value of $105.9 million.
That means the placement was about 8.6 times subscribed.
Concurrent with but separate from the IPO, 10 cornerstone investors subscribed for and purchased an aggregate of 162.7 million cornerstone shares, of which 141.2 million will be new shares issued by the company.
The remaining 21.5 million shares are sold by investment holding company Taiho Holding and group adviser John Ho Ah Huat.
The cornerstone investors consist of Epical Entertainment, Hong Kong Chixin Investment, consultancy firm ICH Capital, entertainment service provider iQiyi International Singapore, King Kong Media Production, Osim International founder Ron Sim and his group's brand creator V3 Brands, Songful Global Investment, Qilin Asset Management and investment holding company Yinson Capital.
G.H.Y. said the offering, issuance of new cornerstone shares and sale of vendor cornerstone shares would raise gross proceeds of about $121.7 million.
It intends to use most of the net proceeds from both the IPO and the cornerstone share issuance to expand its television programme and film production business, and the concert production segment.
It will do so by investing in productions, acquisitions, joint ventures and/or strategic alliances.
The counter closed at 66.5 cents yesterday.
THE BUSINESS TIMES