Shares of ABS-CBN Corporation and its major shareholder, ABS-CBN Holdings Corp., surged on Wednesday after a prominent House of Representatives member filed a bill seeking to revive the company’s broadcast franchise.
Bicol Rep. Joey Salceda, chairman of the House Committee on Ways and Means, introduced House Bill 11252, which, if approved by both the House and Senate, would grant ABS-CBN a new franchise. The company’s previous legislative operating permit expired in May 2020, and its franchise renewal was rejected by Congress two months later during President Rodrigo Duterte’s administration.
Salceda emphasized that congressional hearings had shown no violations of ownership restrictions or any pending tax liabilities, as certified by the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR).
At the close of trading on Wednesday, ABS-CBN shares rose by 27 percent, ending at P6.45, while ABS-CBN Holdings gained 33 percent, closing at P6.00. During the day, ABS-CBN shares reached as high as P7.46, marking a 47 percent increase, while ABS-CBN Holdings hit the daily trading cap, rising 50 percent to P6.75.
The surge in stock prices reflects investor optimism following the potential for a new franchise, which could re-establish ABS-CBN as a dominant force in the Philippine media industry. Given the time before Congress adjourns to make way for the campaign for the midterm elections scheduled in May and Salceda’s plan to run as provincial governor of Bicol, it is highly unlikely this bill will be approved.
