The board of directors of Globe Telecom announced plans to raise PHP32 billion ($591m) through a stock rights offering, a move to fund its ongoing network deployment and remain competitive.
Globe chief financial officer Rizza Maniego-Eala noted this is the first time the Philippines-based operator has executed a stock rights offer in over 20 years and illustrates the confidence the board has in the operator’s current strategy.
Globe’s principal shareholders Singapore Telecom and Ayala Corporation have both shown support for the move, reported The Edge Singapore.
“We believe there is excitement in the market for Globe's future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalisation,” said Maniego-Eala.
“This capital raise will also provide Globe added flexibility to properly compete as we aim to continue delivering quality services to our millions of customers and keep our leadership position in the country. This effort will also further strengthen our balance sheet and empower us to further develop adjacent businesses that will enable the Filipino digital lifestyle,” said Maniego-Eala.
Additionally, the money will be used to repay some debt, and fund the expansion of its digital ecosystem and products outside of telcos for new revenue streams.
The company is reportedly exploring the sale of half its tower portfolio for around US$1.5 billion.