DITO CME Holdings Corp. said Friday it raised P2.05 billion from a follow-on offering (FOO), which was fully subscribed by both institutional and retail investors.
“We would like to thank the investing public for their steadfast support which enabled the success of this FOO,” DITO CME chairman Dennis Uy said.
“The bulk of the FOO proceeds will be used to fund the commercial roll-out of the network of its investee company DITO Telecommunity Corporation. This is for DITO Tel to maintain network superiority and remain a strong player in a very competitive Philippine telecom market,” he said.
Despite being in a highly competitive market, with two months left in 2024, DITO Tel is likely going to grow its revenues by around 45 percent on a year-on-year basis.
The entry of a new investor last year as well as the follow-on offer put DITO on a sounder financial footing and remains on the road to profitability by 2027, the company said.
“We are very happy with DITO CME’ investment in DITO Telecommunity. In a short span of time and during a global pandemic no less, DITO Tel has been able build from the ground up a brand-new world-class 4G-5G network,” said DITO CME president and chief operating officer Donald Patrick Lim.
“Nearly 14 million Filipinos are now DITO users and enjoy fast and reliable telecom services,” he said.
DITO CME earlier said it was aiming to raise up to P40.26 billion until 2028 to address negative equity positions and finance its expansion plans.
The company already raised P5.5 billion as of end-2023 through private investments made by third parties Xterra Ventures Pte Ltd., Summit Telco Corporation Pte Ltd. and Summit Telco Holdings Corp.
