Dito CME vows to ‘stay the course’ in P11-B share sale pitch
Dito CME Holdings Corp. wants to raise P8 billion to P11.3 billion in a share sale to bankroll its bid to challenge industry incumbents PLDT Inc. and Globe Telecom.
The deal marks the first share offer of Dito CME, which used to be ISM Communications Corp. before it was reorganized into the telecommunications holding company of Davao-based business tycoon Dennis A. Uy.
Dito CME, which owns a little over 50 percent of Dito Telecommunity, Uy’s telco venture with state-owned China Telecom, will offer up to 1.64 billion shares to existing stockholders at P4.88 to P6.88 per share.
On Friday, the Philippine Stock Exchange approved the said exercise, known as a stock rights offering, which allows current stockholders to increase their investment in a company.
This is typically priced at a discount to the prevailing market value and proportionate to a stockholder’s shares. The entitlement ratio, however, has yet to be determined.
Dito CME ended Friday’s trading up 4.88 percent to P6.23 per share.
According to the company’s prospectus dated Dec. 6, Dito CME will set the final price on Dec. 17 while the ex-date is set for Dec. 20.The offer period will run from Dec. 27, 2021 through Jan. 18 next year.
The shares are targeted for listing on Jan. 26, 2022. China Bank Capital Corp. will act as sole underwriter for the deal.
Despite the recent downturn in the stock market, Dito CME president Ernesto Alberto hoped there would be “fresh impetus and interest” in the company’s share offer.
“There is good milestone news, which indicate that plans are seeing fruition and on target,” he told the Inquirer. “Obviously, this business is not a sprint but a marathon. We committed to stay the course.”
Dito CME is also developing new businesses through online learning platform Luna Academy, customer data analytics provider Unalytics and marketing and media solutions company Acuity Global.
Dito Telecommunity, the culmination of the Duterte administration’s efforts to introduce more competition in the telco space, remains its largest and most recognizable business. INQ
