Unnamed investor buys 10% of DITO for P1.6B
MANILA -DITO CME Holdings Corp. raised P1.59 billion from the recent acquisition of common shares, representing about 10 percent of its authorized capital stock, by a third party subscriber.
In a disclosure on Wednesday, the listed company said its board of directors had approved the issuance of 1.59 million common shares amounting to P1 each.
Following this transaction, DITO CME increased its issued and outstanding shares from 14.04 billion to 15.63 billion.
The company has yet to name the investor. It is required to disclose given that the transaction represents more than 5 percent of DITO’s common stocks, as per the securities law.
DITO has also yet to share how it will spend the capital infusion.
“Based on its share price movement today, the investment in DITO has raised positive speculations toward the company. Investors could be speculating on this new DITO investor or from proceeds of the investment,” Philstocks Financial Inc. senior research analyst Japhet Louis Tantiangco said.
DITO shares climbed by 4.48 percent to P2.33 each on Wednesday.
“Financials-wise, aside from boosting its capital, we’ll need further details on how this investment would affect DITO,” Tantiangco added.
As this developed, the company led by Davao-based businessman Dennis Uy is expecting to close this year a P217.4-billion project finance loan facility.
Tapping loans
It also entered into a P5.2-billion shareholder loan agreement in Feb. 13, which DITO can tap for operating expenses and maturing obligations. The company has drawn P3.5 billion so far.
DITO CME saw its net loss drop by 79 percent to P3.19 billion in the first half, boosted by robust revenue growth and slowdown in expenses.
Consolidated topline figures surged by 64 percent to P4.96 billion for the period primarily because DITO Telecommunity (DITO Tel). Cost and expenses, meanwhile, fell by 18 percent to P11.58 billion.
DITO Tel is optimistic about its outlook after securing nearly all of its active users who are generating revenues.
After the July 25 deadline and five-day grace period for the SIM card registration, DITO saw 51.72 percent or 7.74 million cards out of 14.96 million registered.
READ: Telco unfazed by SIM card purge
“We’re not really worried about the rest of it who didn’t register. Our business is protected already,” Evelyn Jimenez, chief commercial officer of the third telco player, said earlier.
She noted that the average revenue per user has also now increased to P107 from about P80 a year ago. The telco player is aiming to further hike this to P125 within the year.
DITO is eyeing to grow its subscribers to 9 million to 10 million this year, which will be driven by the prepaid segment.
READ: Bleeding heavily, DITO plans to secure more funding this year
