Globe Telecom’s board of directors announced today (20 June) that they have approved a stock rights offering (SRO) designed to raise PHP32 billion (USD594.7 million) for its ongoing network rollout. Proceeds from the SRO will be used on mobile and fixed broadband projects, as well as for debt repayment, the telco confirmed in a stock market disclosure.
Globe Chief Finance Officer Rizza Maniego-Eala is quoted as saying: ‘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 … 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 [digitisation]’.
As previously reported by CommsUpdate, Globe committed PHP21.0 billion in total cash capital expenditures in January-March 2022, 10% higher than for the same period of 2021, around 82% of which was spent on data network builds ‘to help boost mobile and internet experiences for a greater number of Filipinos’. The company has earmarked PHP89 billion for CAPEX this year.