TELECOMMUNICATIONS and digital services provider DITO CME Holdings, Inc. plans to list its P4.2-billion follow-on offering (FOO) on Oct. 10.
The company has obtained regulatory approval for the FOO, which entails issuing additional shares to the public, DITO CME Holdings President Donald Patrick L. Lim told reporters last week.
“We’re hoping it will be oversubscribed,” he said on the sidelines of the Management Association of the Philippines’ 22nd International CEO Conference.
“Our company is anchored on fundamentals. It is a tech world. We are 5G first and we have a good partner,” he added.
The FOO’s offer period will be from Sept. 26 to Oct. 2, while listing is on Oct. 10, based on the prospectus dated Sept. 10 posted on the company’s website.
The offer consists of 1.954 billion common shares priced at P1 to P2.15 apiece.
The company expects to generate up to P4.127 billion in net proceeds at the maximum offer price of P2.15 per share.
The proceeds will be used as additional capital to support the network expansion of the company’s telecommunications unit DITO Telecommunity Corp., as well as for general corporate purposes.
DITO CME Holdings tapped BDO Capital & Investment Corp. as the sole issue manager, underwriter, and bookrunner for the FOO.
Meanwhile, Mr. Lim said the planned FOO is currently on its fifth audit.
“We’re on our fifth audit. I hope we are going to pass it. Most likely, we will pass the fifth audit. I think all the indicators are there,” he said.
DITO Telecommunity is allocating up to P30 billion for capital expenditures this year, mainly for network rollout.
The company said it will be focusing on gaining market share and commercial rollout while also targeting new product launches.
For the first half, DITO CME Holdings widened its net loss to P28.19 billion from P3.19 billion a year ago as total expenses surged by 22% to P14.14 billion due to higher operating costs.
Revenue rose by 54% to P7.66 billion from P4.96 billion in 2023, led by DITO Telecommunity.
DITO CME Holdings shares were last traded on Sept. 13, finishing at P1.91 per share. — Revin Mikhael D. Ochave
