BIZ BUZZ: Another DITO rights offer
The country’s third telco player DITO Telecommunity recently rolled out a new business leg, aptly called DITO Business, which aims to diversify its user base to include small enterprises and even local governments.
The service, which will use DITO’s 5G mobile network, positions DITO as an economic enabler, especially for smaller businesses that comprise the bulk of commerce in the country, company CEO Ernesto Alberto said.
For Adel Tamano, the division’s new chief, this was a sign that “DITO means business.”
This also comes as the telco challenger finds more stable financial footing after securing hefty loans from Chinese banks and additional support from Davao-based tycoon Dennis Uy, who sold part of his stake to outside investors bent on keeping a low profile.
More importantly for its future, we hear the parent firm DITO CME Holdings is preparing another stock rights offering after an aborted attempt forced the Philippine Stock Exchange to tighten its rules and prevent a similar cancellation in the future.
Depending on where the share price ends up, the offer size might be much smaller than its 2022 attempt. Our sources tell us the offer could be launched as early as the first quarter of this year, assuming market conditions are favorable. —Miguel R. Camus
Meralco’s rising star
Energy distribution giant Manila Electric Co. (Meralco) has a rising star in its modest-sized fiber internet unit, Radius Telecom.
We’re talking about Radius CEO Exequeil “Quiel” Delgado, who has quietly grown the company during the recent pandemic and is leading its expansion charge outside Meralco’s franchise area.
Radius was once a puzzle to outsiders, given that Meralco is an affiliate of mobile and fiber internet giant PLDT Inc. This raised questions on whether it was a redundant business.
But Delgado, a former executive at American multinational telco Verizon in Asia-Pacific, told Biz Buzz their more independent market positioning allows them to serve certain businesses and competitors.
This includes the fast-growing data center sector and even as a second internet option to property developers seeking to avoid antitrust violations. Delgado said Radius would continue to expand in 2024 as they are targeting to nearly double revenues to about P3 billion. —Miguel R. Camus INQ
