Philippine operator Globe Telecom has raised PhP10bn (US$229m) in an oversubscribed sale of non-voting preferred ordinary shares.
It said the shares will be listed on the local exchange this Friday after investors tapped a PhP3bn (US$69m)…
Philippine operator Globe Telecom has raised PhP10bn (US$229m) in an oversubscribed sale of non-voting preferred ordinary shares.
It said the shares will be listed on the local exchange this Friday after investors tapped a PhP3bn (US$69m) oversubscription option on top of the PhP7bn (US$160m) sale.
A total 20,000,000 shares were sold at PhP500 each (US$11.45), and they are subject to a dividend at a fixed rate of 5.2006% per annum.
Proceeds will be used to partially fund its estimated US$650m in capital expenditure requirements for this year, as it upgrades its mobile and fixed networks in the country. A PhP7bn (US$160m) term loan it signed in December 2013 with Landbank of the Philippines will also go towards this cost, as well as internally generated cashflows.
Globe said in its prospectus on 8 August 2014 that it may also enter into bank loan facilities later in the year.
BPI Capital, as issue manager, joined BDO and SB Capital as underwriters for the offering. They will receive underwriting fees of 0.35% of the gross proceeds.
Globe said it ended H1 2014 with record level revenues of PhP47.7bn (US$1.1bn), which is up 7% on the PhP44.5bn (US$1.02bn) it reported for the corresponding period last year. Consolidated EBITDA was up 1% to PhP19.1bn (US$437m).
The company had roughly 40.7 million mobile subscribers as of 31 March 2014, and more than 2.2 million broadband customers, and over 611,000 landline subscribers.
It was the first telecoms company in the Philippines to go public when it listed its shares on the local PSE stock exchange on 11 August 1975.
