DITO CME Holdings Corp. of Davao-based tycoon Dennis Uy plans to convert nearly ₱22 billion in stockholder advances into equity as it battles a widening capital deficiency that has soared to more than ₱117 billion.

In a disclosure to the Philippine Stock Exchange (PSE), DITO CME said it is targeting the conversion of approximately ₱21.8 billion in outstanding advances from stockholders into equity this year and next year.

The advances come from Uy's Udenna Corp. and China Telecommunications Corp. in DITO Telecommunity Corp. (DITO Tel), as well as Xterra Ventures, Summit Telco Corp. Pte. Ltd., and Summit Telco Holdings in DITO CME.

While these advances are intended to be converted into equity, they are recorded as advances to preserve the 60-40 ownership split between DITO Tel’s local and foreign partners.

In particular, state-owned China Telecommunications Corp. is legally barred from owning more than 40 percent of DITO Tel.

Raising nearly ₱22 billion in equity will help DITO CME manage its growing capital deficiency, which reached ₱100.01 billion by the end of 2025 before widening further to ₱117.73 billion in the first quarter of 2026.

DITO CME attributed the wider deficit to the massive infrastructure spending required to build DITO Tel’s nationwide network from scratch, which totaled ₱256.54 billion.

The company also pointed to non-cash losses from foreign currency depreciation, which accumulated to ₱23.64 billion by the end of last year.

DITO CME said it plans to raise ₱8.83 billion through private placements through the end of 2028 to further reduce its capital deficiency, with the company exploring opportunities to secure new investors.

It is also banking on the subscription framework agreement with Summit Telco covering more than nine billion primary common shares, which would make the Singaporean firm the majority owner of DITO CME once it secures regulatory approval.

The company is also keeping open the possibility of another follow-on offering or stock rights offering, although no timetable or target equity raise has been set.

DITO CME said its eventual turnaround remains on track following the recovery of its earnings before interest, taxes, depreciation, and amortization (EBITDA) to ₱3.49 billion in 2025 from ₱422 million in 2024.

The optimistic outlook also hinges on the continued growth of DITO Tel, which now handles a total of 16.63 million mobile subscribers and 470,000 fixed wireless access subscribers in the first quarter.

At present, the telco’s network covers 86.40 percent of the Philippine population, supported by 7,347 towers.

“With the continued ramp-up of operations in the coming years, [DITO CME] expects its accumulated losses to be significantly reduced and eventually eliminated,” the company said.