MANILA, Philippines – Dennis Uy-led Dito CME Holdings Corporation postponed its P8-billion stock rights offering due to “less than ideal” market conditions.
Dito CME’s deferment of its fundraising efforts was announced in a Philippine Stock Exchange (PSE) notice posted on Saturday, January 29.
Dito CME is holding off on its stock rights offering after the management “determined that current market conditions are less than ideal to pursue the offering.”
The firm will also refund all subscription payments made by any existing shareholder or qualified institutional buyer during the offer period.
A rights offering is a company’s invitation for existing shareholders to buy additional stocks at a discounted price.
The PSE, however, has yet to approve Dito CME’s deferment. This means interested investors may still buy stocks from Dito CME until the deferment is finalized.
“This should not be construed as an approval by the exchange of the deferment of the offering. Furthermore, this is without prejudice to any regulatory action that the exchange may pursue in order to ensure full compliance with the applicable rules and for the protection of the investing public consistent with the mandate of the exchange, as a self-regulatory organization, to maintain a fair and orderly market,” Dito said in its disclosure to the PSE.
“The posting of this notice is strictly for dissemination purposes only. The company, its underwriter, and other advisers are responsible for strict compliance with the rules of the exchange. The exchange disclaims any liability arising from, or in connection with, the foregoing matter.”
Dito CME, the parent company of the Philippines’ third telco player Dito Telecommunity, earlier set the price for its stock rights offer at P4.88 apiece in December 2021. Some 1.64 billion shares had been offered, amounting to a total of P8 billion to be spent for the telco’s rollout and other corporate matters.
Dito Telecommunity has launched in over 500 cities and municipalities, and has so far attracted over 5 million subscribers.
The telco, however, faced pandemic restrictions and construction supply shortages, delaying some of its commitments. The expensive rollout also dragged Dito CME into the red. – Rappler.com