Globe Telecom said Friday it received an overwhelming support from shareholders for its P17-billion stock rights offering despite market headwinds.
The telecom unit of the Ayala Group listed 10,119,047 common shares issued to shareholders that participated in the recently-concluded rights offer on the Philippine Stock Exchange.
The common shares were sold at P1,680.00 apiece, allowing the company to raise about P17 billion.
“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 president and chief executive Ernest Cu said.
Ayala Corp. and Singapore Telecom International Pte. Ltd., a wholly owned subsidiary of Singtel, Globe’s principal shareholders, supported the offer by exercising their pre-emptive rights to subscribe to their respective pro-rata share in the offer.
It marked the triumphant return of Globe to equity capital markets after more than two decades since it last raised equity from shareholders.
Globe said the warm reception of the investing public to its rights offer was achieved despite tumultuous financial market conditions, solidifying the status of the company as an outperformer despite market headwinds.
The offer was oversubscribed, and all the Shares were fully allocated to shareholders. It said the achievement, despite challenging market conditions, was a testament of shareholders’ confidence in the company’s strong fundamentals and growth opportunities.
Proceeds from the offer will be used to partly fund capex and pay the company’s short term debt obligations, Globe said.
Globe said it would also enable the company to further expand its digital ecosystem and differentiate itself in the market as it capitalizes on opportunities in and beyond telecommunications.
BPI Capital Corp. 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.