Globe raises P25 billion from preferred shares offer

GLOBE TELECOM, INC. has raised P25 billion from its preferred shares offering, which the company said will be used to fund capital expenditures, redeem securities, and support network investments.

“This strong reception reflects confidence in Globe’s ability to execute our strategic priorities while continuing to elevate network quality and customer experience,” Globe President Carl Raymond R. Cruz said in a stock exchange disclosure on Monday.

“We remain committed to sustaining disciplined investments and building a resilient organization focused on delivering long-term value for our stakeholders,” he added.

The Ayala-led telecommunications company raised the funds through the issuance of 12.5 million cumulative, non-voting, non-participating, non-convertible, redeemable, and re-issuable Philippine peso-denominated perpetual preferred shares. The shares were issued in two series priced at P2,000 each, with a par value of P50 per share.

Globe said the offer was 2.40 times oversubscribed relative to the P15-billion base, allowing the company to fully exercise the P10-billion oversubscription option.

Net proceeds from the offer will be used to redeem part or all of its US-denominated perpetual capital securities, the company said, adding that funds will also support expansion and upgrades of its network and digital infrastructure.

“We believe that this offer underscores the strength of Globe’s credit fundamentals and our disciplined balance sheet management. The robust demand and prudent pricing further reinforce market confidence in our capital management approach,” Globe Chief Financial Officer, Treasurer, and Chief Risk Officer Juan Carlo C. Puno said in a stock exchange disclosure on Monday.

BPI Capital Corp., BDO Capital & Investment Corp., and China Bank Capital Corp. acted as joint lead issue managers, underwriters, and bookrunners.

First Metro Investment Corp. and Security Bank Capital Investment Corp. served as underwriters and bookrunners.

For 2026, Globe expects low- to mid-single-digit revenue growth, following a decline in 2025.

The Ayala-led company reported a 4.12% drop in net income in 2025 to P23.3 billion from P24.3 billion in 2024, weighed down by higher depreciation and interest expenses and lower revenues.

Globe said it anticipates capital expenditures to remain below $1 billion, reflecting a disciplined approach to capital optimization and a focus on extracting greater returns from prior network investments while continuing network expansion.

At the local bourse, shares in Globe fell by P62, or 3.56%, to close at P1,678 apiece. — Ashley Erika O. Jose