Philippines’ Globe Telecom to raise up to 32b pesos via rights issue
Alvina Soh
GLOBE Telecom is proposing a rights offer to raise up to 32 billion pesos (S$823.4 million) from eligible common shareholders of the company, according to a bourse filing on the Singapore Exchange on Monday (Jun 20).
The Manila-listed telecommunications company’s principal shareholders - Singtel and Ayala Corporation, have both indicated their support for the stock rights offer.
As at end-March 2022, Singtel owns about 21.44 per cent of total interest in Globe Telecom. Another 52.36 per cent of the company is owned by Asiacom, a joint venture between Singtel and Ayala.
Globe Telecom intends to use proceeds from the latest fundraising exercise to expand its mobile and broadband networks, as well as repay debts.
Citing significant growth in data traffic in its network supported by increased smartphone penetration, Globe Telecom said it has spent nearly 250 billion pesos in capital over the last 4 years and plans to spend another 89 billion pesos in 2022.
Chief finance officer Rizza Maniego-Eala said this marks the first time Globe Telecom will do a rights offer in the capital market in over 2 decades and there is “massive demand for data-related services as more Filipinos are now embracing the benefits of digitalisation”.
Aside from providing “added flexibility (for Globe Telecom) to properly compete”, he also expects the capital raise to strengthen the company’s balance sheet and develop adjacent businesses to “enable the Filipino digital lifestyle”.
The telecommunications company, which has a market value of about US$6.5 billion as at end-March 2022, expects to launch the stock rights offer after receiving the relevant regulatory approvals.
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