In a stock exchange notice, the company announced the follow-on offering for up to 1.95 billion common shares was priced at P1.05 per share, the lower end of the range marketed to investors from P1 to P2.15 apiece.
Assuming all shares are sold, the offer will raise about P2 billion.
Trading halt
After an hour-long trading halt, the company opened at P1.78 each, down about 7 percent from its previous close of P1.91 each.
It dropped to as low as P1.67 apiece shortly after the open, but bargain hunters stepped in, erasing most of the losses before the noontime break.
Selling continued through the afternoon session, causing DITO CME to finish lower by 6.3 percent to P1.79 per share.
DITO, the parent firm of telco challenger DITO Telecommunity, delayed the pricing and offer of shares last September after investors sought additional time.
Shares priced near strategic investor buy-in cost
The offer is being launched in compliance with the rules of the Philippine Stock Exchange. DITO is undergoing a significant ownership change, with Dennis Uy set to cede control of the firm while keeping a minority stake.
Singapore-based Summit Group, which currently owns about 25 percent, is expected to increase its stake to nearly 50 percent of the holding company.
Last year, entities controlled by the Summit Group started investing in DITO via private share deals at P1 each.
DITO Telecommunity disrupts status quo
DITO's telecommunications arm continues to grow and gain market share versus rivals Smart Communications and Globe Telecom.
In a recent report, First Metro Securities Research projects DITO Telecommunity will capture 6 percent of the mobile market, equivalent to 25 million users, and earn 11 percent of industry service revenue, exceeding P26.5 million, within two years.
“Currently, DITO Tel is on track to meet its 16 million subscriber target by the end of 2024 and has introduced competitively priced offerings. Based on the comparison table below, DITO Tel offers the most competitive pricing on a price per [gigabyte] basis among the major players,” FMS Research said.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
