Globe Telecom Aims to Collect ₱32B With Stock Rights Offer

“This marks the first time Globe will do a rights offer in the capital market in over two decades,” says Globe’s Chief Finance Officer, Ms. Rizza Maniego-Eala. This comes after Globe Telecom’s Board gave its go signal on the stock rights offer last June 20, 2022. 

Globe Telecom Inc is looking to collect ₱32 billion through a stock rights offer in order to pay off its debts and continue its plans to the expansion of mobile and broadband networks.

With the increased finances coming from the proposed Stock Rights Offer, Globe Telecom plans to differentiate itself more from the market by expanding its digital space and taking advantage of opportunities inside and outside of telecommunications.  

Globe experienced a growth in its data network traffic from January to March of 2022 which is a notable 27% increase in the same period of 2021. 

This increase is due to the rise in smartphone usage in the network which rose from 81% to 85% in the years 2020 and 2021 respectively. This also reflected an increase of 22% for per-person data usage. 

To keep up with its increased demand, Globe continues to invest in its network. They have pledged to spend ₱89 billion in 2022 and have spent around ₱250 billion in capital expenditure in the past four years. 

As of March 2022, Gcash was able to attain 60 million users registered on the platform. Globe has also poured more investments into its fintech platform. 

Ms. Maniego-Eala says  “we believe there is excitement in the market for Globe’s future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalization,”

Source: Manila Bulletin