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DITO CME shares plunge days after DITO telco’s commercial roll out

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2020/news/02/20/dito-(1).jpg"/></figure></div><p>MANILA - Shares of DITO CME Holdings plunged 25 percent on Wednesday ending at P9 per share from a previous close of P12, two days after DITO Telecommunity finally rolled out commercial services. </p><p>Wednesday’s closing price was also down 55 percent from the company’s all-time high of P19 per share hit on Feb. 23.</p><p>DITO CME Holdings is separate and distinct from DITO Telecommunity, but holds an indirect stake in the telco through DITO Holdings.</p><p>In November last year, DITO CME, which is owned by Davao-based businessman Dennis Uy, acquired Udenna CME, which is also owned by Uy, through a share swap deal. The restructuring results in DITO CME indirectly controlling around 60 percent of DITO Telecommunity. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/10/20/dito-cme-holdings-moves-to-acquire-3rd-telco-player-via-share-swap-deal">DITO CME Holdings moves to acquire 3rd telco player via share swap deal</a></li></ul><p>Luis Limlingan, managing director of Regina Capital said the price action today was driven mainly by the news of the share swap price at P6.11 per share, and continued profit-taking after the share hit a high of P19.</p><p>Joey Roxas, president of Eagle Equities meanwhile said there were several factors which led to the drop in share prices.</p><p>He noted that Uy himself sold DITO CME shares a few weeks ago, and DITO Telecommunity also said that the telco would not make money for at least 2 years.</p><p>During the Senate hearing on DITO’s <a href="https://news.abs-cbn.com/business/03/10/21/senate-panel-approves-dito-franchise">franchise</a> application on Wednesday, DITO chief administrative officer Adel Tamano said 22,748 people had signed up online for its services after its initial rollout in 15 cities in Visayas and Mindanao. </p><p>Tamano said 6,597 of these have phones that are compatible with DITO&#x27;s network. SIM purchases from partner stores and from other digital channels as of March 9, meanwhile, totaled 7,586.</p><p>Roxas added that DITO CME&#x27;s disclosure on Tuesday confirming that it was issuing 11.2 billion shares to Udenna &quot;was the last straw.&quot; </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/08/21/dennis-uy-leads-dito-commercial-debut-dito-telecommunity-now-available-in-visayas-mindanao">DITO now available in Visayas, Mindanao; will be in NCR &#x27;in a few weeks&#x27;</a></li>	<li><a href="https://news.abs-cbn.com/business/02/22/21/dito-logs-speeds-of-507-mbps-for-5g-85-mbps-for-4g-passes-audit-ntc">DITO logs speeds of 507 Mbps for 5G, 85 Mbps for 4G; passes audit: NTC</a></li></ul><p>DITO chief technology officer Rodolfo Santiago meanwhile said the new telco has already covered over 37 percent of the country&#x27;s population.</p><p>The telco&#x27;s franchise was approved by a Senate panel on Wednesday.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1636995" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

<p>Shares of DITO CME Holdings plunged 25 percent on Wednesday ending at P9 per share from a previous close of P12, two days after DITO Telecommunity finally rolled out commercial services. </p>

Shares of DITO CME Holdings plunged 25 percent on Wednesday ending at P9 per share from a previous close of P12, two days after DITO Telecommunity finally rolled out commercial services.