Cirtek stock rights offering gets green light from PSE

Jul 02, 2021

Cirtek stock rights offering gets green light from PSE

by VG Cabuag Business Mirror

Laguna-based Cirtek Holdings Philippines Corp. on Wednesday said it secured the approval of the Philippine Stock Exchange Inc. (PSE) for the company’s stock rights offering (SRO) with bonus detachable warrants, which could yield P1.37 billion.

The company has set a final offer price of P5.50 per entitlement right and a final exercise price of P5.50 for the bonus detachable warrants.

Cirtek said it intends to list some 249.44 million in common shares for the rights shares and 249.44 million in detachable warrants with 249.44 million in underlying common shares.

Investors holding common shares of Cirtek prior to July 2 will be entitled to subscribe to additional common shares of the company at a discounted price of P5.50.

The company said it will give one entitlement right for every 1.68 common shares held.

The entitlement rights shall be subject to the Security and Exchange Commission’s approval of the company’s application for an increase in authorized capital stock.

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.

Each bonus detachable warrant entitles the investor to the right to subscribe to one underlying common share of the company beginning on the 12th month until the 36th month from issue date at an exercise price of P5.50. The bonus detachable warrants shall be exercisable during business hours within the first two trading days of each month, the company said.

The company said offer period will be from July 12 to 22. Listing on the PSE is tentatively set for August 16.

Cirtek said it expects to raise some P1.37 billion from the SRO.

“Net proceeds will be used to primarily finance the working capital of Quintel USA Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions Inc., as well as to refinance the existing debt/payout short-term obligations of Cirtek Electronics Corp.,” the company said.

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. Philippine National Bank – Trust Banking Group will serve as as the receiving and escrow Agent, and BDO Unibank, Inc. – Trust Banking Group as the stock transfer agent and warrants registrar.

Cirtek share price closed on Wednesday at P6.18 apiece.

  • Jan 12, 2021

    Citek assigned ´PRS A (corp.)´ issuer credit rating

    Citek assigned ´PRS A (corp.)´ issuer credit rating

    Cirtek Holdings Philippines Corp. has been assigned an above average capability to fulfill financial obligations by a local debt watcher.

    Read more
  • Jul 02, 2021

    Cirtek stock rights offering gets green light from PSE

    by VG Cabuag Business Mirror

    Laguna-based Cirtek Holdings Philippines Corp. on Wednesday said it secured the approval of the Philippine Stock Exchange Inc. (PSE) for the company’s stock rights offering (SRO) with bonus detachable warrants, which could yield P1.37 billion.

    The company has set a final offer price of P5.50 per entitlement right and a final exercise price of P5.50 for the bonus detachable warrants.

    Cirtek said it intends to list some 249.44 million in common shares for the rights shares and 249.44 million in detachable warrants with 249.44 million in underlying common shares.

    Inve...

    Read more
  • Jul 05, 2021

    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 P5.5...

    Read more