GHY Culture & Media IPO sees 0.8% gain on trading debut

It opened at 70 Singapore cents from IPO price of 66 cents; stock ended the day at 66.5 cents


ENTERTAINMENT and content provider GHY Culture & Media Holding Co gained 0.8 per cent on its debut on the mainboard of the Singapore Exchange (SGX) on Friday.

GHY ended the day at 66.5 Singapore cents, up by 0.5 cent from its initial public offering (IPO) price of 66 cents.

The counter opened at 70 cents, some 6.1 per cent higher than the IPO price. The stock gradually eased to as low as 65.5 cents at 10.30am, before recovering slightly to 66 cents.

GHY shares held fairly steady in the afternoon session. In total, some 12.5 million shares changed hands over the course of the day.

Group chief executive officer and chairman Guo Jingyu on Friday 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.

"With our expansion plans and exciting projects in the pipeline, we are well-positioned to capture new opportunities in the media and entertainment industry and establish ourselves as the choice entertainment group in the region," Mr Guo added.

GHY sold 21.7 million shares at 66 Singapore cents as part of its listing on 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 public tranche. There were 1,402 valid applications for a total of 48.1 million shares under the public tranche.

Meanwhile, for the placement, GHY received indications of interest for some 160.4 million shares with a total value of S$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.

GHY said the offering, issuance of new cornerstone shares and sale of vendor cornerstone shares would raise gross proceeds of about S$121.7 million.

It intends to use most of the net proceeds from both the IPO and the cornerstone share issuance to expand its TV 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.

DBS, UOB Kay Hian and Bank of China, Singapore were the IPO's joint underwriters and bookrunners.

SGX head of global sales and origination Chew Sutat said on Friday: "Among its future plans, GHY intends to leverage technological advancements to further diversify into new media content such as interactive dramas."

"Entertainment has become an ubiquitous part of our lives, in particular online video platforms which have grown increasingly popular given the ease and convenience of Internet streaming."

Mr Chew added that the bourse operator looks forward to continuing to be GHY's global fundraising partner, as it expands its international reach and uses its media to bridge China and the Asean region.

Following the IPO, GHY's capitalisation stands at about S$708.7 million. This adds to SGX's mainboard listings with a combined market capitalisation of more than S$856.3 billion, the bourse operator said on Friday.