The board of listed Globe Telecom Inc. has reduced the size of the telco’s stock rights offering (SRO) by almost half to P17 billion, from the previous P32 billion.
The said shares will come from the company’s increase in authorized capital stock to P11.25 billion from the previous P10.25 billion.
Each stock will have a par value of P50 each and will be sold at between 18 percent and 25 percent discount per entitlement right, the company said.
Globe shares were last traded at P2,166 apiece.
Pricing date is set on September 8, while the start of offer will begin on October 3 and end on October 7.
The proceeds from the SRO will be primarily used for pre-payment or repayment, repurchase of all or a portion of certain borrowing, including interest and other liabilities availed by Globe for its capital expenditures (capex) and for other capital expenditure plans.
BPI Capital Corp. has been picked as the deal’s sole global coordinator, domestic lead underwriter and joint bookrunner while UBS AG Singapore branch is the sole international underwriter and bookrunner. PNB Capital and Investment Corp. is the domestic co-lead underwriter.
In February, the company announced that it has allotted P89 billion for its capex program this year. The amount is 4 percent lower than the P92.8 billion it spent in 2021.
The company said in a disclosure to the stock exchange that the money will be used to build more cell sites, upgrade existing ones, deploy 4G and 5G radios, and add more fiber lines across the country.
Last year, Globe aggressively expanded its fixed line and wireless networks, building 1,407 new cell sites, upgraded over 22,300 mobile sites, installed more than 2,000 5G radios, and installed 1.4 million fiber-to-the-home lines.
Aside from announcing its capital outlays program for 2022, Globe also reported that it netted P23.7 billion in profits last year, a 27-percent increase from last year’s P18.6 billion.
Its core net income stood at P21.2 billion, which is 9-percent higher than the year prior, fueled by the 4-percent increase in net income to P151.5 billion, but this was partially offset by the effects of Typhoon Odette to its total operating expenses of P76.6 billion.