Cirtek gets ‘PRS A’ rating on proposed P2-b fund-raising

Jan 13, 2021

Cirtek gets ‘PRS A’ rating on proposed P2-b fund-raising

Manila Standard by Jenniffer B. Austria

Cirtek Holdings Philippines Corp. said Wednesday it received a credit rating of PRS A (corp.) with a stable outlook from Philippine Rating Services Corp. on its planned fund-raising.

The rating was issued in relation to CHPC’s three-year shelf registration of commercial paper for up to P2 billion.

A company rated PRS A (corp.) has an above average capacity to meet its financial commitments relative to that of other Philippine corporates. The company, however, is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.

A stable outlook means the “rating is likely to be maintained or to remain unchanged in the next twelve months.

”Philratings considered the CHPC’s manageable liquidity and capitalization levels as well as Cirtek group’s established track record in the industry, supported by a strong and experienced management team that has navigated the Group through economic cycles, crises and industry challenges.

Philratings also noted CHPC’s strong customer base of well-established and global companies, improved profit margins despite lower revenues, attributable to the company’s cost management efforts.

CHPC is a fully-integrated global technology company focused on wireless communication. It is an independent, complete solutions provider for subcontract manufacturing of semiconductor devices and provides a broad range of assembly and testing services for various product applications and industries.

The company was able grow its operations amid a highly competitive and cyclical industry with larger international players.

CHPC’s consolidated revenues fell 14.4 percent in the first nine months of 2020 to $59.5 million from a year ago, pulled down by the 30-percent decrease in CHPC’s US-based subsidiary Quintel’s revenue contribution to $16.5 million.

The company, however, managed to reduce cost of sales at a faster rate of 18.2 percent to $44.4 million.

Nine-month net income slightly declined 1.7 percent to $3.6 million, while net profit margin increased by 5.3 percent to 6.1 percent from 5.3 percent in the same period a year ago.

  • Dec 05, 2021

    Cirtek preferred shares offer secures SEC nod

    Published by Daily Tribune

    The Securities and Exchange Commission (SEC) has issued Cirtek Holdings Philippines Corporation (TECH) a permit to sell and order of registration of securities for the primary offering of up to 50 million Preferred Class B-2 Shares.

    In a disclosure on Thursday, TECH said the cumulative, non-participating, non-voting, non-convertible perpetual and redeemable peso-denominated Preferred Class B-2 Shares has a par value of P1.00 per share at an offer price of P50 per share to be issued as Preferred Class B-2 Subseries C or D Shares.

    The preferred shares are targeted to b...

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  • Dec 02, 2021

    SEC allows Cirtek to sell ₧2.5B in preferred shares

    Published by Business Mirror

    Laguna-based Cirtek Holdings Philippines Corp. on Thursday said it secured the green light of the Securities and Exchange Commission for its primary offering of up to 50 million in perpetual preferred shares.

    The company is selling its preferred shares to be classified as class B-2 subseries C or D shares at P50 apiece. Cirtek expects to raise some P2.5 billion from the offering.

    The public offer period will run until December 3 and will be listed on the Philippine Stock Exchange on December 14.

    Cirtek has been allowed to offer up to 70 million shares, or proceeds ...

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  • Oct 27, 2021

    Jerry Liu gets SEC’s nod to proceed with Cirtek’s preferred share offer

    Published by Bilyonaryo

    The Securities and Exchange Commission (SEC) has approved the plan of Jerry Liu-led Cirtek Holdings Philippines Corp. to raise up to P3.5 billion from the sale of preferred shares.

    Cirtek is selling up to 70 million preferred shares at P50 per share.

    Net proceeds from the offering, amounting to P3.44 billion, will be used to refinance debt, pay down maturing obligations and support capital expenditure requirements.

    The offering will start on November 25 and will run until December 3, in time for the listing of the preferred shares on the Philippine Stock Exchange on Dec...

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