Globe completes rights offer with P17B in funds secured

Globe Telecom successfully raised P17 billion from the stock market, its first equity offer in two decades—an era that witnessed the birth of smartphones and the telco giant’s steady diversification into digital services and financial technology products.

The telecommunications arm of the Ayala Group completed on Friday a stock rights offer with the listing of 10.12 million shares on the Philippine Stock Exchange.

The move bolsters an aggressive strategy to expand broadband and digital services, which includes the GCash mobile wallet, the $2-billion venture with Chinese billionaire Jack Ma.

“We are overwhelmed by the support shown by Globe’s shareholders for this offer. This support reflects trust in the capability of Globe to execute our core business and digital service platform initiatives,” Globe CEO Ernest Cu said in a statement on Friday.

Globe said the transaction, which was priced at a discounted P1,680 per share, was oversubscribed due to strong demand from investors.

“The warm reception of the investing public to Globe’s rights offer was achieved despite tumultuous financial market conditions, solidifying the status of Globe as an outperformer despite market headwinds,” the company said.

Capex

Proceeds from the offer will be used to partly fund Globe’s P89-billion capital spending budget for the year and pay down short-term debts.

It will also be used to “further expand [Globe’s] digital ecosystem and differentiate itself in the market as it capitalizes on opportunities in and beyond telecommunications.”

More recently, Globe has styled itself as a leading digital platform. This includes telecommunications as well as its investments in fintech, digital marketing solutions, corporate venture building, virtual healthcare, ecommerce and entertainment.

“We believe that this offer highlights Globe’s competitive differentiation in the market, further solidifies our healthy financials and enables us to pursue greater milestones while delivering industry-leading value to our shareholders,” said Globe chief finance officer Rizza Maniego-Eala.

Globe shareholders Ayala Corp. and Singapore Telecom International Pte. Ltd, a wholly owned subsidiary of Singapore Telecommunications, supported the offer by exercising their preemptive rights to subscribe.

BPI Capital Corp. was the sole global coordinator, domestic lead underwriter and joint bookrunner. UBS was the sole international underwriter and joint bookrunner while PNB Capital was the domestic colead underwriter.