The Philippine Stock Exchange has distanced itself from the decision of cash-strapped businessman Dennis Uy’s DITO CME Holdings to postpone its P8 billion stock rights offering four days after the end of its fundraising activity.
On January 29, DITO informed the PSE that its management, led by Uy, had decided not to pursue the SRO because “current market conditions are less than ideal for pursuing the offering.”
From December 27 to January 25, DITO offered to sell 1.64 billion shares at P4.88 per share. Because of the low demand for the stock of the third telco player, the SRO was extended by one week.
The PSE stated that the listing notice issued on Saturday, January 29 should not be interpreted as its approval of DITO’s SRO deferment.
“This is without prejudice to any regulatory action that the Exchange may take to ensure full compliance with the applicable rules and to protect the investing public,” the PSE stated.
“The posting of this notice is solely for the purpose of disseminating it.” The company, its underwriter (China Banking Corp.), and other advisers are responsible for adhering to the Exchange’s rules. “The Exchange expressly disclaims any and all liability arising from or in connection with the foregoing,” the PSE added.
According to a stock market source, DITO’s last-minute cancellation has no precedent in the history of the stock market because companies were not allowed to cancel their offerings unilaterally.
“There’s nothing wrong with canceling a tick offering, but not after the deadline has passed and the money has been collected from investors,” the source said.
“It doesn’t matter whether the PSE approves or rejects the SRO deferment. The PSE’s reputation will suffer as a result,” said the source.
Source: Bilyonaryo