Dito CME Eyes Up to P2.05 Billion from Follow-On Offering (FOO)

Dito CME Eyes Up to P2.05 Billion from Follow-On Offering (FOO). Dito CME Holdings Corp., led by Davao-based businessman Dennis Uy, is gearing up for its follow-on offering (FOO) to raise as much as P2.05 billion. The announcement of the finalized offer price marks a significant step in this publicly listed company efforts to secure funding for its strategic projects.

Here everything you need to know about this pivotal move by Dito CME.

Final Offer Price and Timeline

Dito CME has set the offer price for its FOO at P1.05 per share, which is at the lower end of the previously estimated range of P1 to P2.15 per share. The company plans to issue up to 1.95 billion common shares to the public.

The offering period is scheduled to run from November 20 to 26, 2024, with the shares tentatively set to list on the Philippine Stock Exchange (PSE) by December 6, 2024.

A Delayed but Resilient Offering

Initially, the FOO was scheduled between September 26 and October 2, 2024, but it was postponed due to requests from potential investors seeking additional time to evaluate the opportunity. Despite this delay, Dito CME reaffirmed its commitment to moving forward with the fundraising plan in November.

Purpose of The Fundraising

The proceeds from this follow-on offering will primarily be allocated for:

Capital infusion into DITO Telecommunity Corp : Supporting the company’s commercial rollout and expanding its network infrastructure.
General corporate requirements : Ensuring operational stability and flexibility for its diverse business ventures.

DITO Telecommunity, the telecommunications arm of Dito CME, plays a key role in the company’s long-term strategy to compete with industry giants in the Philippines’ telecom sector.

Dito CME: A Diverse Holding Company

Dito CME serves as the investment hub of Dennis Uy’s Udenna Group, with operations spanning media, communications, entertainment, and information and communications technology (ICT). Its portfolio includes companies involved in:

Telecommunications
Digital platforms and applications
Media and content production
Analytics and digital infrastructure

This diverse array of investments positions Dito CME as a significant player in the evolving digital and telecommunications landscape in the Philippines.

New Investments from Summit Telco Corp

Earlier this month, Dito CME entered a subscription framework agreement with Summit Telco Corp. Pte. Ltd., marking a major shift in its ownership structure. Summit Telco plans to subscribe to up to nine billion primary common shares, subject to regulatory approvals and closing conditions.

If this transaction pushes through, Udenna Corp. 54.77% majority stake in Dito CME may be reduced, potentially ceding majority control to Summit Telco, which currently holds a 25.03% stake in the company. This development underscores the dynamic changes in ownership as Dito CME seeks to bolster its capital base.

Strategic Implications for Dito CME

The follow-on offering represents a critical step for Dito CME to sustain its growth trajectory in a competitive market. By securing substantial funding, the company aims to:

Accelerate the commercial and technical rollout of DITO Telecommunity.
Strengthen its position as a key player in telecommunications and ICT in the Philippines.
Expand its digital media and content ecosystem.

The participation of Summit Telco in the company’s capital structure further highlights investor confidence in Dito CME strategic direction and growth potential.

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Conclusion

Dito CME follow-on offering is not just a financial milestone; it signifies a broader strategy to enhance its market position in telecommunications and ICT while strengthening its diverse investment portfolio. As the company moves forward with its fundraising plans, the infusion of new capital is expected to support its ambitious goals and deliver value to its shareholders.

This development also reflects the company’s adaptability and strategic foresight in navigating a dynamic and competitive industry landscape. Stakeholders and potential investors should keep a close eye on the results of the FOO and its implications for Dito CME’s future.