Globe Telecom Inc. will raise up to P32 billion through a stock rights offer (SRO) which will be used for the expansion of its mobile and broadband networks as well as for debt repayments.
In a disclosure to the stock exchange, Globe said its board of directors approved yesterday the SRO for eligible common shareholders.
Rizza Maniego-Eala, Globe chief finance officer, said the capital raising will provide Globe added flexibility to properly compete, as the company aims to continue delivering quality services to its customers.
Maniego-Eala said this effort will also further strengthen Globe’s balance sheet and develop adjacent businesses for the Filipino digital lifestyle.
“This marks the first time Globe will do a rights offer in the capital market in over two decades and shows the principal shareholders’ confidence in the company and its plans going forward,” she said.
“We believe there is excitement in the market for Globe’s future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalization.” she added.
The common shares for this offer will be issued out of the increase in the company’s authorized capital stock, which was approved by Globe’s board of directors
and shareholders last April 25 and April 26, respectively.
Globe said the increase in capital stock, SRO and listing of the shares on the Philippine Stock Exchange are each subject to the relevant regulatory approvals.
Globe expects to launch the SRO after receiving the required approvals, under favorable market conditions.
Singapore Telecom International Pte. Ltd., a wholly owned subsidiary of Singtel, and Ayala Corp., Globe’s principal shareholders, have both indicated their support for the SRO.
In addition, Globe said the proposed SRO will enable it to further expand its digital ecosystem and further differentiate itself in the market, as it capitalizes on opportunities in and beyond telco.
