Globe circles international equity investors

Cellular operator Globe Telecom has mandated Morgan Stanley Dean Witter for an innovative issue of Philippine depositary receipts (PDRs).

The roughly $205 million transaction is likely to be launched within the next month and should serve the triple purpose of raising much needed funds for capex, allowing foreign institutional investors to hold Globe stock for the first time and prepare the fast growing company for a Nasdaq flotation.

Analysts take a very positive view of the move which not only represents the first international equity offering from the Philippines this year, but also only the second ever PDR issue following ABS-CBN's pioneering example in 1999. Other syndicate members are believed to comprise Credit Lyonnais, Jardine Fleming and ING Barings.

Says one Manila-based research head, Initially foreign investors would have...

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