MANILA — Dennis Uy's DITO CME Holdings, parent of DITO Telecommunity, said it is looking at fund-raising activities, capital infusions as well as various cost-cutting measures this year as its losses piled up to P11.4 billion in 2022.
In its audited financial statement, DITO outlined its capital deficiency, which hit P27.9 billion at the end of last year.
"The Group has plans to do various fund-raising activities within 2023, which include a follow-on offering at the Parent Company level, wherein proceeds will be used to fund the Group’s telecommunications and digital businesses funding requirements," the company said in a disclosure last Monday.
In addition, Udenna and the minority shareholders of DITO Tel are also committed to provide additional capital," it added.
In January 2022 DITO CME attempted to raise funds through the sale of 1.64 billion common shares priced at P4.88 each. The share sale, however, was deferred due to "less than ideal market conditions and other perceived risks."
The company said it secured commitments from creditors for a loan facility of up to $3.9 billion which is expected to be closed in 2023, subject to conditions and regulatory approvals. In February 2023, it also entered into a shareholder loan agreement worth CNY 650.0 million (P5.2 billion), which can be drawn any time to address operating expenses and maturing obligations, it added.