The Securities and Exchange Commission (SEC) said Thursday it approved the P4.2-billion follow-on offering of DITO CME Holdings Corp., a company led by businessman Dennis Uy.
DITO CME, which owns the country’s third telecom player DITO Telecommunity, will sell 1.953 billion common shares at P1 to P2.15 apiece, subject to the company’s compliance with certain requirements.
The company said it would use the proceeds to fund the commercial rollout of its network expansion and for general corporate purposes.
The offer will run from Sept. 5 to Sept. 12, in time for listing of the shares on the main board of the Philippine Stock Exchange on Sept. 20, according to the latest timeline submitted by the company.
The company tapped BDO Capital & Investment Corp. as the sole underwriter for the transaction.
DITO CME Holdings Corp. last week reported it was eyeing to raise up to P40.26 billion until 2028 to address its negative equity position and support its expansion plans.
The company raised P5.5 billion as of end-2023 from private investments made by third parties Xterra Ventures Pte Ltd., Summit Telco Corp. Pte Ltd. and Summit Telco Holdings Corp.
DITO Telecommunity has over 11.3 million subscribers, about 7,450 telecommunications towers as of June 2024, covering over 80.65 percent of the Philippine’s population.
DITO CME’s net loss widened to P28.19 billion in the first half of the year from P3.18 billion net loss recorded in the same period last year.
Net loss in the second quarter ballooned to P18.1 billion from P2.47 billion in the same quarter a year ago.
Consolidated net revenues, mainly generated by DITO Telecomunity, soared to P7.6 billion billion in first half of 2024 from P5.96 billion in 2023.
The share price of DITO CME closed at P1.96 Thursday.
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