Cirtek undertakes P2.5 B preferred share offering

Dec 02, 2021

Cirtek undertakes P2.5 B preferred share offering

Published by Manila Bulletin

Cirtek Holdings Philippines Corporation (TECH) has set the size of its ongoing public offering of its preferred shares to a maximum of P2.5 billion.

The firm said in a disclosure to the Philippine Stock Exchange that it has started the primary offering of up to 50 million cumulative, non-participating, non-voting, non-convertible perpetual and redeemable peso-denominated Preferred Class B-2 Shares at an offer price of P50.00 per share.

The final offer structure consists of P1.5 billion in aggregate issue value, consisting of up to 30 million Preferred Class B-2 Shares.

In the event of oversubscription, PNB Capital and Investment Corporation, the Sole Issue Manager, Lead Underwriter and Sole Bookrunner, in consultation with the Corporation, has the right to offer up to an additional 20 million Preferred Class B-2 Shares.

The offer period will run until December 03, 2021. The preferred shares are targeted to be listed in the Philippine Stock Exchange (PSE) on December 14,2021.

Although the preferred shares are perpetual, they have a synthetic maturity of three and five years from the listing date.

If TECH does not redeem the Subseries C or Subseries D preferred shares on the third and fifth year, respectively, the company will have to pay a higher dividend rate.

The initial dividend rate of the Preferred Class B-2 Subseries C shares has been set at 6.5864 percent per annum while that of the Preferred Class B-2 Subseries D shares has been set at 7.7506 percent per annum.

TECH expects to raise gross proceeds from the primary offering at P1.46 billion. Assuming that all the Oversubscription Option are fully exercised total gross proceeds will reach about P2.44 billion.

Net proceeds will be used to primarily finance the additional capital expenditure/equipment, partial payments of maturing Preferred Class B2-A shares and maturing loans and working capital of Quintel USA, Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions, Inc.

With the success of the offering, Cirtek will continue to maintain its roadmap to achieve key engagement in the 5G market and will continue in developing and delivering innovative high-quality products, production flexibility, supply chain stability, and capability to work with customers on development of next generation products.

  • Dec 02, 2021

    Cirtek secures SEC nod on P2.5-b share offering

    Published by Manila Standard

    Cirtek Holdings Philippines Corp. said Thursday it obtained the approval of the Securities and Exchange Commission to issue P2.5-billion worth of preferred shares. Cirtek said in a disclosure to the stock exchange it would offer 50 million cumulative, non-participating, non-voting, non-convertible perpetual and redeemable preferred shares at P50 apiece. Cirtek will issue the preferred shares in two series, including Class B-2 Subseries C shares with a dividend rate of 6.5864 percent per annum, and Class B-2 Subseries D shares with a dividend rate of 7.7506 percent ...

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  • Jan 12, 2021

    Cirtek to scale up production, income

    Cirtek to scale up production, income

    Cirtek Electronics Corporation on Monday said it will scale-up its production and improve revenues

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  • Dec 03, 2021

    Cirtek wrapping up P2.5-B perpetual preferred shares offer

    Published by Inquirer.net

    Electronics manufacturer Cirtek Holdings Philippines Corp. is set to conclude today, Dec. 3, the public offering of as much as P2.5 billion worth of perpetual preferred shares, proceeds from which will be used to refinance debt and fund the expansion of key subsidiaries.

    Cirtek’s preferred shares have two series: one with a synthetic maturity of three years carrying an interest rate of 6.5864 percent per annum, and another with a synthetic maturity of five years carrying an interest rate of 7.7506 percent per annum.

    Higher divident rate The synthetic maturity means th...

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