Globe hopes to raise P17 billion from SRO

MANILA, Philippines — Ayala-led Globe Telecom Inc. hopes to raise as much as P17 billion from  stock rights offering (SRO) to fund the repayment of certain debts, as well as the completion of network upgrades.

In a disclosure to the Philippine Stock Exchange (PSE), Globe said it plans to conduct a SRO of common shares, subject to the approval of the Securities and Exchange Commission (SEC) of the proposed increase in its authorized capital stock (ACS).

Globe expects to generate up to P17 billion from the sale of common shares with a par value of P50 apiece.

Globe said it would use the proceeds from the SRO to repay certain obligations, including their interests, that the firm took up to finance its projects. Also, a portion will be allocated for the delivery of expansion plans listed under its capex.

However, Globe has yet to identify the number of common shares it will offer pending the SEC’s approval of its proposal for an increase in ACS.    In April the management and shareholders of the telco giant authorized the increase in Globe’s ACS to P11.25 billion from P10.25 billion.

Globe scheduled the pricing date on Sept. 8 and the ex-rights date on Sept. 16. The firm slated the rights offer period between Oct. 3 and Oct. 7 and the tentative listing date on Oct. 28.

The Bank of the Philippine Islands (BPI) will serve as the stock transfer agent, while BPI Asset Management and Trust Corp. will run the escrow duties. On the other hand, UBS AG Singapore Branch and PNB Capital and Investment Corp. will underwrite the SRO.

Globe plans to spend a total of P89 billion for its 2022 capex with the goal of building at least 1,700 new cell sites across the country.