Globe raises P25B from preferred shares offer

Ayala-led Globe Telecom Inc. has raised P25 billion from an oversubscribed offering of nonvoting perpetual preferred shares, reflecting what the company called “strong confidence” in its “disciplined” capital management and long-term strategy.

In a disclosure on Monday, the telco giant said the offer was 2.4 times oversubscribed compared with the P15-billion base size, allowing the company to fully exercise its P10-billion oversubscription option.

It issued 12.5 million preferred shares priced at P2,000 each, bringing total proceeds from the transaction to P25 billion.

“This strong reception reflects confidence in Globe’s ability to execute our strategic priorities while continuing to elevate network quality and customer experience,” said Globe president and CEO Carl Cruz.

“This transaction strengthens our capital structure, maintains financial flexibility and positions us to pursue our strategic objectives while maintaining a clear focus on sustainable free cash flow generation,” added Juan Carlo Puno, chief financial and risk officer and treasurer at Globe.

The newly issued shares were formally listed and began trading on the local bourse on March 2.

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Globe has set the initial dividend rate at 6.1179 percent per annum for Series A shares, which are redeemable in five years, and 6.7631 percent per annum for Series B shares, redeemable in 10 years.

Earlier, Globe said it plans to use about P14.89 billion from the base offer proceeds to redeem $600 million in senior perpetual capital securities issued in November 2021. The disbursement is expected between April to November 2026.