DITO slashes follow-on price to P1.05

Despite lowering the final price per share, DITO CME Holdings Corp., the parent company of third telecommunications player DITO Telecommunity Corp., is set to raise approximately P2.051 billion through its planned follow-on offering.

In a stock exchange disclosure on Monday, the company announced that it has set the final price for the offering at P1.05 per share, which is more than 50 percent lower than the initial maximum indicative price of P2.15 per share.

"The Company will reflect the Offer Price in the Offer-related documents to be submitted to the Securities and Exchange Commission and Philippine Stock Exchange," the company said.

Despite the price reduction, DITO CME remains optimistic about attracting investors during the subscription period, which runs from 20 to 26 November.

The offering, originally scheduled for September, was postponed to provide more time for investor evaluation amid challenging market conditions.

Proceeds from the offering will be used to fund the expansion of DITO's commercial network and cover general corporate expenses. BDO Capital & Investment Corp. is serving as the sole underwriter for the transaction.

Earlier this month, DITO CME announced the approval of a potential investment from Summit Telco Corp. Pte. Ltd., following the signing of a subscription framework agreement with the existing shareholder.

If the deal goes forward as planned, it could lead to the issuance of up to nine billion new shares, with company executives authorized to finalize the agreement to further strengthen DITO’s financial position.

Additionally, DITO CME revealed in August its plan to raise up to P40.26 billion from private investors over the next five years to bolster its financial position and support growth.