Market integrity takes priority
A boardroom dispute recently arose in the Securities and Exchange Commission (SEC) after DAILY TRIBUNE’s Typewriter Fiend received a tip regarding DITO CME Holdings Corp.’s follow-on offering (FOO), which aimed to raise as much as P4.12 billion in fresh funding.
A corporate source suspected a sweetheart deal after DITO CME Holdings, the parent firm of the third telco DITO Telecommunity Corp., received approval from the Commission En Banc on 15 Aug. for the sale of 1.95 billion common shares priced between P1 and P2.15 per share.
An SEC insider confirmed the tip, adding that one of the commissioners challenged the SEC’s approval of the FOO because it did not include a firm underwriting commitment.
The tipster noted concerns within the investor community about a repeat of the 2022 incident when an underwriter was allowed to withdraw, citing “unfavorable market conditions.”
The last time DITO attempted to sell shares was in February 2022, a process that failed, prompting the Philippine Stock Exchange (PSE) to implement structural changes to preserve the integrity of the capital-raising process. Both DITO and the bank that underwrote the offering were sanctioned for the infraction, with the source stating that the underwriter’s withdrawal cast a negative light on the local financial market.
Given that two regulatory bodies approved the listing applications, DAILY TRIBUNE sought clarification from PSE president Ramon Monzon regarding the bourse’s rules.
After all, the actual listing occurs on the PSE, and if investors have concerns about a public offering, they typically approach the PSE before the SEC.
On the existing rules for underwriting public offerings, Monzon told this paper that initial public offerings (IPOs), FOOs, and stock rights offerings (SROs) all require a firm underwriting commitment from the designated underwriters.
“PSE has long required all public offerings to have a firm underwriting commitment, and this requirement is embodied in the Exchange’s Listing Rules,” Monzon said. He added that the offering cancellation in January 2022 was a clear violation of existing rules and requirements.
“To avoid a similar occurrence in the future and as an added measure, we required issuers and underwriters in subsequent offerings to limit the grounds for withdrawal of the offer and cancellation/termination of the underwriting commitment to force majeure events only, once the offer period has commenced for IPOs and FOOs, and on or after the end of trading on the day immediately preceding the ex-date in cases of SROs.”
Monzon referred to the SRO cancellation by DITO and its underwriter, Chinabank Capital Corp., after the offer period but before the company could list its shares on the PSE.
“BDO Capital and Investment Corp. has a firm underwriting commitment for the FOO of DITO.” That is the assurance given by Monzon for DITO’s FOO.
Art elevates MCIA to a new level
Mactan-Cebu International Airport (MCIA), already considered one of the most elegant airports in the world, received an added makeover through the masterpieces of National Artist and Father of Philippine Indie Cinema, Kidlat Tahimik, also known as Eric Oteyza de Guia.
His unique art installations have given the airport’s Terminal 2 International Departures Area a culturally rich atmosphere that enhances passengers’ artistic experience even before they step out of the MCIA.
Most of the sculptures feature elements of Cebu’s vibrant cultural heritage and depict the untold stories of Magellan’s historic expedition to Cebu, while highlighting the legendary figure of Lapu-Lapu. Kidlat Tahimik’s art vividly brings these encounters to life, offering travelers a glimpse into the island’s past.
Crafted from authentic wood and stone, the art installations integrate natural elements with historical narratives, creating a nostalgic ambiance that resonates deeply with viewers. The pieces also reflect the enduring connection between the island’s natural environment and its cultural identity.
Kidlat Tahimik’s creations invite MCIA passengers to pause and immerse themselves in the rich culture of the Philippines, sparking curiosity about the greater wonders that await them when they step into the land of friendly smiles.