Globe Telecom, the Philippine associate of SGX-listed Singapore Telecommunications (Singtel), has raised gross proceeds of 17.0 billion pesos ($410.6 million) through its rights offer.
In its statement dated Oct 28, Globe says it has formally listed 10.12 million common shares to shareholders that participated in the rights offer, pricing the shares at 1,680 pesos apiece.
The offer marks Globe’s return to equity capital markets after two decades since it last raised equity from its shareholders.
The offer was said to be oversubscribed. All the rights shares were fully allocated to Globe’s existing shareholders.
According to Globe, proceeds from the offer will be used to partly fund capital expenditures (capex) and pay the company’s short term debt obligations.
It will also enable the company to further expand its digital ecosystem and differentiate itself in the market as it capitalises on opportunities in and beyond telecommunications.
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Ernest Cu, Globe’s president and CEO says, “We are overwhelmed by the support shown by Globe’s shareholders for this offer. This support reflects trust in the capability of Globe to execute our core business and digital service platform initiatives. We are truly appreciative of their continued partnership with us to create and enable the digital life of the Philippines”.
Globe CFO Rizza Maniego-Eala adds: “We believe that this offer highlights Globe’s competitive differentiation in the market, further solidifies our healthy financials and enables us to pursue greater milestones while delivering industry-leading value to our shareholders. This offer likewise empowers the company with the necessary flexibility to navigate this ever dynamic environment”.
Ayala Corporation and Singtel’s subsidiary, Singapore Telecom International, supported the offer by exercising their pre-emptive rights to subscribe to their respective pro-rata share in the offer.
BPI Capital Corporation is the sole global coordinator, domestic lead underwriter and joint bookrunner. UBS is the sole international underwriter and joint bookrunner. PNB Capital is the domestic co-lead underwriter.
Shares in Singtel are trading 4 cents higher or 1.66% up at $2.45.
