FM radio company to issue shares

Press, 26 October 1982, Page 30

FM radio company to issue shares

PA Auckland One of the two firms planning to start FM stereo radio in Auckland wants the public to take up a 30 per cent ownership of its station. Stereo FM, Ltd, is launching a JI million share issue which will see it apply for stock exchange listing and offer 332.150 shares to the public. In August Stereo FM and Metropolitan FM Broadcasting, Ltd. were the successful applicants at Broadcasting Tribunal hearings for the warrants to run the country’s first two full-time commercial FM radio stations, both of which will be in Auckland. Metropolitan FM intends to remain a private company and will not offer shares to the public. Both broadcastiing warrants are subject to High Court appeals by two unsuccessful applicants, but Stereo

FM. Ltd, and Metropolitan FM hope to be broadcasting in five to seven months. The managing director of Stereo FM, Mr Alan Rutledge, said that the station could save itself six months in its ability to start broadcasting by making the share float now rather than await the outcome of the appeal. Stereo FM is making an issue of 953,400 100 c shares, of which only 12.5 c a share is to be paid with subscriptions. The offer will be open from November 15 to December 19 or until it is filled. According to the prospectus, the $119,475 expected

to be raised by the 12.5 c initial payment will be used for legal expenses during the High Court appeal and to .position the firm to begin broadcasting as soon as possible after the court decision is known. 'No further payments on the shares will be asked for until at least February 1. Of the 953,400 shares to be offered, 332,150 will be available to the investing public. The remaining 621,250 is to be taken up by the existing! 64 shareholders. Counting . the existing 146,000 issued shares, the public would then own 30.21 per cent of the company.