Globe stock rights offer raises P17 billion

MANILA, Philippines — Telco giant Globe Telecom Inc. has fully subscribed the amount of P17 billion from its stock rights offering (SRO), raising the cash needed to cover debt payments and capital expenditures.

In a regulatory filing, Globe announced that it sold a total of 10.12 million common shares at an offer price of P1,680 per entitlement right, for a total of P16.99 billion.

“Accordingly, the company’s offer price was fully subscribed,” Globe said.

Globe explained that it will issue the rights shares through its hike in its authorized stock capital (ACS). In April, the management and shareholders of the Ayala-led telco approved the increase in Globe’s ACS to P11.25 billion from P10.25 billion.

Globe said that it pushed through with the approval process for the increase in its ACS in June. However, certain documents required to complete the procedure will only be made available for release now that the rights offer period has ended.

After the conclusion of the rights share and increase in Globe’s ACS, the total number of issued and outstanding shares in the telco giant will rise to 144.06 million common shares, with a par value of P7.2 billion.

Further, Globe’s voting preferred shares and non-voting preferred shares stand at 158.52 million and 20 million, respectively, with par values of P792.58 million and P1 billion each.

“The subscription to and issuance of the rights shares will become complete only upon listing of the rights shares on the Philippine Stock Exchange, Inc.,” Globe said.

Globe said it would use the proceeds from the SRO to repay certain debts, including interests, that the firm acquired to finance its expansion. A portion will be spent for the delivery of network upgrades listed under its capex.

Moving forward, Globe is scheduled to list the rights shares on or before Oct. 28, depending on when regulatory approvals are granted. The Bank of the Philippine Islands served as the stock transfer agent for the transaction while UBS AG Singapore and PNB Capital and Investment Corp. underwrote the SRO.

For the year, Globe has allotted  P89 billion for its capex, with the target of building at least 1,700 new cell sites nationwide.

In the long run, the Ayala-led telco eyes to expand its fiber assets, modernize towers to 4G and LTE, and improve its 5G technology to cater to the changing demands of its subscribers.