A day after it imposed a trading halt, the Philippine Stock Exchange agreed to resume trading in DITO CME Holdings of cash-strapped businessman Dennis Uy.
The PSE, however, reiterated that the lifting of the trading halt “should not be construed as the Exchange’s approval of the deferment of the offering and is without prejudice to any regulatory action that the Exchange may pursue in order to ensure full compliance with the applicable rules and for the protection of the investing public.”
DITO will reopen at 10:30 a.m. on Wednesday, February 2, after management promised to refund the few who subscribed to its P8 billion stock rights offering, which failed on February 2 and 3.
On Monday, January 31, the PSE halted DITO trading after management announced that it was canceling the P8 billion stock rights offering due to low demand.
“With the SRO postponed, the company, through its receiving agent (AB Stock Transfers), shall promptly refund all subscription payments received, via check, in full and without interest,” DITO stated.
DITO, on the other hand, required subscribers seeking a refund to sign a waiver shielding DITO, China Bank Capital, and AB Stock Transfer from any liabilities or suits arising from the SRO flop, except when such claims are due to the indemnified party’s gross negligence or willful violation of law.
DITO decided to cancel the SRO on January 29, four days after the offer period ended on December 27, 2021.
The cancellation has become a major source of embarrassment for the PSE, which has never seen such a shambles in which a company (DITO) and its underwriter (China Bank) unilaterally decided to cancel a firm undertaking after receiving investor funds.