Philippines-based Globe Telecom laid out plans to raise PHP32 billion ($591.9 million) for its ongoing network expansion and to pay down debt, with the board approving a stock rights offer which is backed by its two largest shareholders Ayala and Singtel.
Globe Telecom CFO Rizza Maniego-Eala noted in a statement this is the operator’s first rights offer in the capital market in more than two decades and shows its principal shareholders’ confidence in the company and its plans going forward.
Maniego-Eala added the capital raise also will “strengthen our balance sheet and empower us to further develop adjacent businesses that will enable the Filipino digital lifestyle”.
Common shares will be issued out of an increase in the company’s authorised capital stock.
The increase in capital stock, the stock rights offer and the listing of the shares on the Philippine Stock Exchange are each subject to standard regulatory approvals.
Globe Telecom earmarked PHP89 billion for capex in 2022, after allocating PHP250 million over the past four years.
GSMA Intelligence data showed Globe Telecom ended March with 87.6 million mobile connections, ahead of rival Smart Communications with 70.3 million.