Cirtek receives PSE nod for stock rights offer, warrants

Jul 05, 2021

Cirtek receives PSE nod for stock rights offer, warrants

Business World

CIRTEK Holdings Philippines Corp. received the approval of The Philippine Stock Exchange, Inc. (PSE) for its stock rights offering with bonus detachable warrants.

The company said in regulatory filing on Wednesday that shareholders eligible to participate in the stock rights offering should pass the requisite documents and participate during the offer period scheduled on July 12 to July 22.

Listing for both the rights shares and the bonus detachable warrants are tentatively scheduled for Aug. 16, while the ex-rights date and record date will be on July 2 and July 7, respectively.

Further, the company announced that investors who hold common shares of Cirtek before the ex-rights date will be entitled to subscribe to additional common shares, known as entitlement rights, at a price of P5.50.

“The Entitlement Rights shall be subject to the approval of the Securities and Exchange Commission (SEC) of Cirtek’s application for 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,” Cirtek said.

“Each bonus detachable warrant entitles the investor the right to subscribe to one underlying common share of Cirtek 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,” it added.

According to Cirtek, an investor will be entitled to one entitlement right for every 1.68 common shares held.

“Correspondingly, for every one Entitlement Right subscribed to, the investor will be issued one bonus detachable warrant with one underlying common share of Cirtek to be issued upon exercise of the bonus detachable warrant,” the company said.

On June 25, Cirtek announced the final offer price of its rights share at P5.50 and the final exercise price of its bonus detachable warrants also at P5.50.

“[The company] intends to list 249,442,472 common shares and 249,442,472 Bonus Detachable Warrants with 249,442,472 underlying common shares,” Cirtek said.

“Cirtek expects to raise gross proceeds of P1,371,933,596 from the stock rights offering of 249,442,472 Entitlement Rights. 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 and pay out short-term obligations of Cirtek Electronics Corp.,” it added.

On Wednesday, shares of Cirtek at the stock exchange improved 0.98% or six centavos to end at P6.18 per share. — Revin Mikhael D. Ochave

  • 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...

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  • Jul 14, 2021

    Quintel renews deal with N. American telcos

    Published By Malaya Business Insight

    Cirtek Holdings Philippines Corp.’s telecom base antenna unit Quintel USA Inc. has secured five more years of contract to supply antennas to two leading carriers in North America.

    Cirtek said this is following a series of new product introductions released by Quintel when 5G is at an inflection point.

    “Quintel’s 5G products are precisely designed with the customer’s network architecture in mind allowing synergies in terms of backwards compatibility to existing infrastructure while providing 5G capability at a fraction of the cost against competitor products...

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  • Jul 19, 2021

    No brainer: Abacus explains the value of TECH warrants

    Published by Bilyonaryo

    Shareholders of Cirtek Holdings Philippines Corp. are probably scratching their heads over the stock’s underwhelming performance in the middle of its P1.4B stock rights offering.

    Shares of TECH closed at P5.21 per share during Friday’s trading, down 25 percent from an intra-day high and below the P5.50 subscription price for the SRO.

    Should shareholders subscribe when they can buy shares for cheaper at market?

    Nicky Franco, the head of research of Abacus Securities, said taking up the TECH rights with its bonus warrants should be a “no brainer.”

    Franco estimated that th...

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