Ayala-backed Globe Telecom, Inc. has secured the regulator’s approval to launch its P25-billion preferred shares sale to help provide financial boost for the business.

In a stock exchange disclosure on Friday, the company confirmed receiving a Certificate of Permit to Offer Securities from the Securities and Exchange Commission.

Globe is set to raise up to P25 billion through the sale of 12.5 million non-voting preferred shares at P2,000 apiece.

The offering includes a guaranteed 7.5 million shares, with an option to sell an additional 5 million shares if demand exceeds expectations.

“Dividends on the First Tranche Shares, as and if declared by the Board, shall be at a fixed rate of 6.1179 percent per annum for the Series A Non-Voting Preferred Shares and 6.7631 percent per annum for the Series B Non-Voting Preferred Shares,” the Globe report read. 

If the base offer alone is sold, Globe could secure P15 billion, with the oversubscription pushing total proceeds to P25 billion.

According to Globe, prospective investors should review the Prospectus and Offer Supplement and consult their tax and other advisors before investing. 

The First Tranche Shares are being offered through BPI Capital Corp., BDO Capital & Investment Corp., and China Bank Capital Corp. as Joint Lead Issue Managers. 

First Metro Investment Corp. and Security Bank Capital Investment Corp. are serving as Joint Underwriters and Joint Bookrunners, with East West Banking Corp., Land Bank of the Philippines, and PSE trading participants acting as Selling Agents.

Globe President and CEO Carl Cruz previously said it will maintain its cash capital expenditures at around $1 billion this year, matching last year’s spending, as it focuses on data services and network expansion.

“Most of it will really go to data services. More or less the same level, $1 billion cash capex. And we will continue expanding the network,” Cruz said.

Last year, Globe sustained a 4.1 percent decline in net income of P23.3 billion after elevated depreciation and interest expenses weighed on earnings.