{"id":328886,"date":"2024-08-11T12:57:02","date_gmt":"2024-08-11T04:57:02","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328886"},"modified":"2024-08-14T00:55:24","modified_gmt":"2024-08-13T16:55:24","slug":"trade-the-news-dito-to-conduct-follow-on-offering-in-september","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-dito-to-conduct-follow-on-offering-in-september\/","title":{"rendered":"Trade the News: DITO to conduct follow-on offering in September"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>DITO CME Holdings Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>DITO<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Unrated<\/td><\/tr>
1-Year Target Price<\/strong><\/td>Unrated<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

DITO CME Holdings Corp. (DITO) is seeking P44.46 billion in fresh funds through a follow-on offering (FOO) to boost its expansion plans and partially offset capital deficiency brought about by previous network investments.<\/p>\n\n\n\n

As part of various fundraising activities lined up, the parent company of the country\u2019s third telco player had scheduled an FOO this September to raise between P1.95 billion and P4.2 billion.<\/p>\n\n\n\n

The company led by Davao-based businessman Dennis Uy previously said the capital infusion would \u201cfund the group\u2019s telecommunications and digital businesses\u2019 funding requirements.\u201d<\/p>\n\n\n\n

DITO CME also wants to secure up to P40.26 billion in fresh funding via private placements in the next five years or until the end of 2028. DITO said the private investment would \u201cpartially address the negative equity position.\u201d <\/p>\n\n\n\n

It noted that it spent P256.54 billion to upgrade its network in recent years, leaving it with a capital deficiency of P44.43 billion as of end-March.<\/p>\n\n\n\n

\u201c[The] other main source of losses is through depreciation. This item is germane to the startup nature of DITO Tel as it has to construct new towers and facilities for the rollout of its network, and would have to book depreciation in its books,\u201d it added. <\/p>\n\n\n\n

In the first quarter, DITO registered depreciation and amortization of P3.43 billion, up 17 percent from P2.93 billion the year before. DITO CME last year received P5.5 billion from selling common shares to Singapore-based third party investors.<\/p>\n\n\n\n

On the debt side, DITO CME also secured last year a 15-year loan agreement from several creditors amounting to $3.9 billion (about P224.48 billion) in total. It drew P170.61 billion from these loan facilities to repay obligations and network construction-related payables.<\/p>\n\n\n\n

(News excerpt from Philippine Daily Inquirer<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-328886","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/328886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=328886"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/328886\/revisions"}],"predecessor-version":[{"id":328941,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/328886\/revisions\/328941"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=328886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=328886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=328886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}