The rehabilitating telecommunications company Philippine Telegraph & Telephone Corp. (PT&T) on Friday bared the intention to resume trading on the Philippine Stock Exchange after a voluntary suspension that lasted nearly 20 years.
The company said in a statement that it is “actively pursuing the resumption of its trading on the PSE.”
PT&T shares were last traded on 9 December 2004 when it closed at P0.33 per share. It had a public float of 29.95 percent.
While the PSE acknowledged the company no longer faces capital deficiency, the regulator said PT&T still has pending items it needs to address under its rehabilitation program.
This, PT&T said, it acknowledges.
“While we cannot provide a specific date at this time, we are diligently fulfilling the requirements outlined in our rehabilitation plan. By adhering to the requirements set forth in the plan, PT&T aims to demonstrate its commitment to financial stability and regain its position as a trading entity on the exchange,” James Velasquez, PT&T president and chief executive, said.
“Our immediate goal is to secure the necessary approvals from the PSE to resume trading as soon as possible,” Velasquez added.
In November 2023, the Securities and Exchange Commission (SEC) green lit the company’s increase in authorized capital from P3.8 billion to P12.6 billion.
The increase allowed the conversion of P8.9 billion debt into equity and paved the way for the issuance of preferred shares (Series “A”, “B”, and “C”) as outlined in the rehabilitation plan, PT&T said.
“Furthermore, it enabled the partial settlement of statutory obligations, salaries, wages, and other employee benefits from the escrow accounts as of December 2023,” the added.
PT&T said the debt-to-equity conversion eliminated P9.3 billion in capital deficiency resulting to a reduction in liabilities that boosted its capital position. A subsequent financial turnaround helped the company post a net income of P7.9 million in 2023, a reversal from P14.2 million losses in 2022.
The business generate gross revenue amounting to P617.38 million last year, up 5 percent from only P583.87 million in 2022.
“We are delighted to report PT&T’s impressive shift, which demonstrates our dedication to financial resilience and growth,” Velasquez said.
“We take pride in eliminating our capital deficiency through a successful debt-to-equity conversion and significantly strengthening our capital position,” he added.
PT&T also said it has engaged the services of one of the world’s largest financial advisory groups for its proposed fundraising program via the stock market.
“With our fundraising initiative, we anticipate a substantial enhancement of our capacity to deliver reliable, streamlined, and sustainable broadband and IT services,” Velasquez said.
“This enhancement will not only benefit the CALABARZON region but also extend nationwide over the next few years, meeting the growing demand for connectivity in the country,” Velasquez said.
PT&T has a network reach of 28,266 fiber kilometers in high-growth areas across the country covering almost 40 percent of the total population.
The business holds a 25-year national legislative franchise that allows it to establish, maintain, and operate both wired and wireless telecommunications systems for domestic and international communication.
