Cirtek to push stock rights offer

By Faye Almazan The Manila Times

Listed Cirtek Holdings Philippines Corp. on Wednesday said the Philippine Stock Exchange Inc. (PSE) has approved its stock rights offering (SRO) with bonus detachable warrants.

In a disclosure to the exchange, the company said the PSE approved its listing application last June 23.

Cirtek intends to list 249.44 million common shares and 249.44 million Bonus Detachable Warrants, with 249.44 million underlying common shares.

The firm said it has set the final offer price of its SRO at P5.50 and the final exercise price of its bonus detachable warrants also at P5.50.

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Cirtek looks to net P1.37 billion from the SRO, which will be used to finance the working capital of Quintel USA Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions Inc.

The fund will also be used to refinance existing debt or payout the short-term obligations of Cirtek Electronics Corp.

Cirtek said investors holding common shares prior to the ex-rights date on July 2, will be entitled to subscribe to additional common shares at a discounted price of P5.50.

"For every one entitlement right subscribed to, one bonus detachable warrant shall be issued free of charge to the investor and shall be issued as part of the subscription to the entitlement rights," the company added.

Abacus Capital and Investment Corp. and PNB Capital and Investment Corp. will serve as the joint issue managers and lead underwriters for the SRO with bonus detachable warrants, with Philippine National Bank-Trust Banking Group as the receiving and escrow agent and BDO Unibank, Inc.-Trust Banking Group as the stock transfer agent and warrants registrar.

Shares of Cirtek inched up by 6 centavos or 0.98 percent to finish at P6.18 apiece on Wednesday.