DITO CME’s share sale OK’d; telco net loss up
The Securities and Exchange Commission (SEC) has approved the P4.2-billion follow-on offering of DITO CME Holdings Corp., which plans to use the proceeds to beef up its telecommunications arm and address growing demand for connectivity.
This also came as DITO’s net loss in the first half of the year ballooned by nearly ninefold to P28.18 billion from P3.43 billion a year ago as expenses swelled.
The corporate watchdog on Thursday said its commission en banc had approved DITO’s registration statement covering 1.94 billion common shares priced at up to P2.15 per share.
DITO, the company of Davao-based businessman Dennis Uy and parent firm of telco challenger DITO Telecommunity (DITO Tel), has yet to disclose the final offer price.
The company will offer the shares from Sept. 5 to Sept. 12 and list these on the main board of the Philippine Stock Exchange on Sept. 20.
BDO Capital and Investment Corp. is the sole underwriter for the transaction.
Based on DITO’s financial filing, its first-semester revenues surged by 54 percent to P7.66 billion, driven by DITO Tel.
Expenses, however, climbed by 22 percent to P14.14 billion due to costlier general, selling and administrative costs, and depreciation and amortization, thus resulting in a net loss.
Mobile data revenues in the January to June period surged by 46 percent to P5.47 billion as it attracted more subscribers.
A study by analytics firm OpenSignal earlier found that DITO Tel was the favored mobile network provider in top tourist destinations across the country, besting giants Smart Communications and Globe Telecom in a yearslong hustle to establish dominance in the industry.
