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Globe’s pricing of SRO shares and PSE tie-up pique investors

INVESTORS were piqued with Globe Telecom, Inc. last week after the company announced the pricing of its stock rights offering (SRO) and the tie-up with the local bourse for easier trading using its e-wallet app.

Data from the Philippine Stock Exchange showed Globe trading P848.41 million worth of 394,550 shares from Sept. 12 to 16.

Shares in the Ayala-led telecommunications company went up by 1.3% to close at P2,118 a piece last Friday. Since the start of the year, however, Globe has declined by 35.4%.

“The news of the SRO has piqued the interest of the investors, given that the offer price per entitlement ratio offers above 22% discount to its 30-day VWAP (volume-weighted average price),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said.

In an e-mail, he added that the collaboration of GCash with the stock exchange was also good news for investors as the tie-up could result in higher transactions on both ends.

Last Sept. 12, the telecommunications company announced its SRO price at P1,680 per share for one entitlement right for every 13.2366 shares owned by investors.

With a total of 10.12 million shares up for sale, Globe plans to raise P17 billion, which according to the press release will be used on the following: pre-payment or repayment, repurchase of all or a portion of certain borrowing, including interest, and other liabilities availed of by the company for capital expenditures; and capital expenditure plans.

The rights offering will begin on Oct. 3 until Oct. 7.

Meanwhile, the Philippine Stock Exchange said on Sept. 14 that it had tied up with the e-wallet company GCash to offer stock trading via the app.

In an interview on BusinessWorld Live, PSE President and Chief Executive Officer Ramon S. Monzon said that GCash users will be able to start investing via the app in November.

Mr. Limlingan said the partnership will be good for Globe’s stock in the future, more so if this provides ease and accessibility in trading for investors.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a Viber message that the partnership will be good for Globe and its subscribers as this will allow app users to have more features to take advantage of.

Globe earlier reported that its second-quarter attributable income reached P6.01 billion, up nearly 6% from P5.68 billion a year earlier.

This put Globe’s first-half attributable income at P19.65 billion, up by 51% from P12.99 billion in the same period in 2021. Analysts are looking forward to Globe’s upward trajectory for the rest of the year.

Mr. Mangun gave his third- and fourth-quarter income expectation for Globe to reach around P6 billion to 6.2 billion. 

“The tower sale and leaseback transaction [are] expected to boost GLO’s 3Q22 performance. For the whole year, we think a double-digit bottom-line growth is achievable,” Mr. Limlingan said, referring to the ticker symbol of Globe.

He sees the stock’s immediate support at 2,050, while its resistance at P2,220.

“Hard to say where the stock is headed in the coming months, but in the near term looks like its current support will hold and it could possibly go above the 2,200 mark,” Mr. Limlingan added.

Mr. Mangun placed Globe’s support and resistance levels at P2,000 and P2,300, respectively, adding that he sees the company to continue trading within this range until the end of the rights offering. — Bernadette Therese M. Gadon

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