DITO aiming to raise P4.2B from share sale
DITO CME Holdings Corp., owner of DITO Telecommunity, on Friday said that it was planning to raise up to P4.2 billion in fresh capital via a follow-on share offering.
The fundraising involves the sale of up to 1.95 billion shares at a maximum price of P2.15 apiece, representing up to 10 percent of DITO CME’s outstanding capital stock
“The purpose of the follow-on offering is to raise funds that will be infused as additional capital into its operating subsidiary, DITO Telecommunity Corp … in order to support its commercial roll-out of its network expansion and for general corporate requirements and for regulatory compliance with the public offering requirements,” the company said.
The shares to be offered will come from unissued capital stock.
DITO added that the target filing and submission to the Securities and Exchange Commission and Philippine Stock Exchange would be from May 31 to June 7 while pricing is scheduled to be announced on Aug. 14, 2024.
“Please note that the dates … are merely indicative and are subject to market and other relevant conditions,” it added.
DITO Telecommunity earlier said that it expected revenue to reach P20 billion this year, up from P11 billion in 2023.
The company also anticipates achieving positive earnings before interest, taxes, depreciation, and amortization by 2025.
DITO is targeting 15 to 16 million subscribers this year from a current subscriber base of 10.4 million.
For home broadband, the company expects about 300,000 to 400,000 subscribers this year from the current 100,000.
DITO also expects to pass a final mandatory performance audit by the National Telecommunications Commission by July.
It earlier said that it was on track to hit a national population coverage of 84 percent by July from the current 82 percent.
DITO passed its fourth mandatory performance audit with a national population coverage of 80.65 percent.
With respect to minimum average broadband speeds (MABS), DITO was clocked at 74.97 megabits per second (Mbps) for 4G and 639.32 Mbps for 5G for all sites, with combined MABS of 357.14 Mbps.