Nilangaw talaga! Cash-strapped Dennis Uy cancels P8B rights offer due to ‘weak demand, poor market conditions’

What a disaster.

Davao-based businessman Dennis Uy has decided to scrap DITO CME Holdings’s P8 billion stock rights offering (SRO) on account of merchants prevented his telecommunications company similar to the plague.

In a deleted tweet by Inquirer reporter Miguel Camus, DITO president Eric Alberto acknowledged the SRO was canceled on account of “weak demand and poor market situations.”

Alberto acknowledged DITO might relaunch the offering throughout the third quarter of 2022, or after Uy patron President Rodrigo Duterte, has ended his time interval in office.

Alberto acknowledged that the few who subscribed to the SRO could be refunded “on the soonest attainable time.”

$DITO cancels upcoming SRO. (By way of @miguelrcamusINQ ) pic.twitter.com/9rb1i4iTIz

— stocktraderspilipinas (@stocktradersph) January 28, 2022

DITO’s SRO already had the makings of a disaster as early as 27 December 2021 when Uy started taking offers for 1.64 billion shares of the company’s new shares at P4.88 each.

DITO even extended the availability interval from January 18 to January 25 “on account of quite a few requests from shareholders who have been unable to subscribe to the providing nor obtain their SRO kits on time on account of logistical difficulties caused by the surge of COVID-19.”

Nonetheless, no matter taking nearly a month to advertise its shares, DITO would possibly nonetheless not uncover any takers for its SRO.

DITO closed at P5.18 on the end of the SRO interval on January 25, the similar worth on its ex-rights on December 20.

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DITO traded between P5.96 and P4.90 in the midst of the SRO interval. The SRO worth low price apparently was not compelling adequate for merchants.

DITO’s sole underwriter is China Banking Corp. which has a P6 billion mortgage to Uy’s debt-burdened PH Resorts Group which is struggling to finish its Cebu on line on line casino lodge mission.

DITO CME owns 54 % of DITO Telecommunity which gained the bidding for the third telco participant franchise on account of all totally different bidders had been disqualified.

It deliberate to utilize the SRO proceeds for its goal to attain 70 % of the nation’s inhabitants by July 2022 from 53 % as of the third quarter of 2021.