DITO CME Holdings, owned by Davao businessman Dennis Uy, has come up with a slew of justifications for abandoning its P8 billion stock rights offering (SRO) four days after the month-long offer period ended.
DITO president Ernesto Alberto cited three reasons for the SRO cancellation in a letter to the Philippine Stock Exchange: the negative opening of the Philippine financial markets in 2022; the surge of the COVID Omicron variant during the offer period from December 27 to January 25; and the hawkish pronouncements of the US Federal Reserve.
Institutional investors “stayed on the sidelines due to the bearish market,” Alberto said in another interview.
“Given the current market conditions, the company believes it owes it to all of its shareholders, including minority shareholders, to ensure that their investments are adequately protected and that other viable options for raising funds are pursued instead,” Alberto said.
“Various investors have expressed disappointment in the company’s inability to continue the SRO, but the company will definitely pursue options of relaunching the SRO, a public offering, or other fundraising means as soon as market conditions have improved, with regulator approval,” Alberto added, noting that DITO Telecommunity has access to $4 billion in credit to fund its capital needs.