DITO CME Holdings Corp. (DCME) plans to raise up to P40.26 billion within the next five years or until 2028 from private placement.
In a disclosure to the Philippine Stock Exchange, DITO CME, operator of third telco DITO Tel, said with any capitalization that will be raised, its foreign partner China Telecommunications Corp. also committed to invest the same amount of equity to help reduce the capital deficiency at DITO Tel.
Last year, DCME incurred a total comprehensive loss amounting to P19.6 billion, resulting in a capital deficiency of P35.4 billion and it further increased to P44.43 billion in the first quarter of the year.
The main cause of the negative shareholders’ equity is DITO Tel’s pre-operating and start-up costs for the rollout of its telecommunications network in five years with a committed investment of P256.54 billion.
At the end of 2023, DITO raised P1.59 billion; P610 million in August 2023 and P3.3 billion in October 2023 from private investments made by third parties Xterra Ventures Pte Ltd., Summit Telco Corp. Pte Ltd. and Summit Telco Holdings Corp.
