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 the warrants, which comes with the subscription of the rights shares, were worth between P0.99 and P2.82 based on Bloomberg’s warrant valuation model.
This means that even at P5.21 plus the minimum P.99, the stock is well above the strike price of P5.50. The warrants come free of charge, as a bonus, to those who subscribe to the offering.
Franco cited the history of Leisure Resorts and its warrants, LRW, to illustrate his point that share price should not only be compared to the strike price.
The report pointed out that LRW, which has an exercise price of P15, rose to as high as P7 even though shares of LR itself maxed out at P12.
Franco expected TECH’s second quarter earnings “to be as good” as the first three months when the firm posted wide margins and on the back of higher orders (boosted by the current chip shortage) and the extension of Quintel’s master supply agreement with two major US telcos (five-years from the original one year deal).
Abacus Capital and Investment and PNB Capital Investment are TECH joint issue managers and lead underwriters.
Jul 05, 2021
By Maria Romero Tribune PH
Laguna-based Cirtek Holding Philippines Corporation has secured approval from the Philippine Stock Exchange (PSE) for its stock rights offer (SRO) with bonus detachable warrants.
In a regulatory filing on Wednesday, Cirtek said it has also set its final offer price at P5.50 per Entitlement Right and final Exercise Price at P5.50 for the bonus detachable warrants.
The company intends to list 249 million common shares or right shares and another 249 million bonus detachable warrants with 249 million underlying common shares.
Investors who hold common shares of the comp...
Read moreOct 27, 2021
Published By Manila Bulletin
The Securities and Exchange Commission (SEC) has approved the planned P3.5 billion preferred shares offering by Cirtek Holdings Philippines Corporation.
In its meeting on October 26, the Commission En Banc resolved to render effective the registration statement of Cirtek covering 50 million preferred B-2 Subseries C and D shares at an offer price of P50 per preferred share, with an oversubscription option of up to 20 million preferred shares.
The preferred shares will be listed and traded on the Main Board of the Philippine Stock Exchange (PSE).
The listed tech man...
Read moreJul 14, 2021
Published By VG CABUAG BusinessMirror
Quintel USA Inc., a unit of Laguna-based Cirtek Holdings Philippines Corp., on Monday said it has extended its master supply agreement with two major leading carriers in North America.
The extension of the agreement allows Quintel another 5 years of secured business with these two telcos, the firm said.
“Quintel is poised to grow its business in the near to medium term as evidenced by the relevance of its pioneering products that has been well received by our customers. Our products allow carriers to stay ahead of their game and maximize 5G services in the...
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