GLOBE Telecom Inc. on Monday said that it had raised P25 billion from a preferred share offering, the net proceeds of which will be used to optimize its capital structure and support network investments.
In a statement, Globe said that it issued 12.5 million cumulative, non-voting, non-participating, non-convertible, redeemable, and re-issuable peso-denominated perpetual preferred shares under a follow-on offering.
The shares were issued in two series at P2,000 apiece.
It said that net proceeds would be used to redeem all or a portion of US-dollar denominated perpetual capital securities and fund capital expenditures for the continued expansion and enhancement of its network and digital infrastructure.
“We believe that this offering underscores the strength of our credit fundamentals,” Chief Financial Officer Juan Carlo Puno said.
“This transaction will help strengthen our capital structure, maintain financial flexibility, and position us to pursue our strategic objectives while maintaining a clear focus on sustainable free cash flow generation,” he added.
The offer was 2.40 times oversubscribed from the P15-billion base size, and Globe fully exercised a P10.0 billion oversubscription option.
The non-voting preferred shares were listed and started trading on the Philippine Stock Exchange on Monday, March 2.
“We are encouraged by the overwhelming support shown by our institutional and retail investors for this offer,” Globe President and CEO Carl Raymond Cruz said.
“This strong reception reflects confidence in our ability to execute our strategic priorities while continuing to elevate network quality and customer experience,” he added.
BPI Capital Corp., BDO Capital & Investment Corp., and China Bank Capital Corp. were the joint lead issue managers and also served as joint underwriters and joint bookrunners together with First Metro Investment Corp. and Security Bank Capital Investment Corp.
Globe shares on Monday dropped P62.00, or 3.62 percent, to P1,678.00 apiece in tandem with a weaker broader market, with the PSE index ending the day down 2.79 percent.