August 17, 2024 | 12:00am
MANILA, Philippines — Dito CME Holdings Corp. has received regulatory approval to raise up to P4.2 billion through a follow-on offer of common shares to existing investors.
In a disclosure, Dito said it has received approval from the Securities and Exchange Commission (SEC) to offer new shares.
“With regard to Dito’s application for its proposed up to P4.2 billion follow-on offer of common shares with the SEC, please be advised that the company has received the pre-effective approval letter from the SEC,” Dito said.
The telco committed to disclose further details about the offer as soon as they become available.
Earlier, Dito has announced that it is tapping BDO Capital Corp. as underwriter, and the target is to conclude the offer within the third quarter.
The offer serves as the first of five projects that Dito will pursue until 2028 to beef up its war chest and erase its capital deficiency.
Dito’s negative equity has ballooned to P62.57 billion as of June.
Its net loss worsened by eight times to P12.05 billion, even as revenue increased to P7.66 billion on new subscribers captured by its flagship unit Dito Telecommunity Corp.
Dito’s balance sheet was compromised by P9.32 billion in interest expenses and P12.38 billion in currency losses, outweighing whatever gains made from commercial expansion.
Dito is eyeing to break even by 2025 and swing to a profit by 2028, requiring it to come up with a funding pipeline to ensure this financial guidance is achieved.
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