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 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
Aug 16, 2021
Published by Daily Tribune
Cirtek Holdings Philippines Corporation (TECH) has raised P1.37 billion from the stock price offering of 249 million shares on Monday.
The company intends to use the proceeds from the offer to partially retire its short-term obligations and refinance the working capital of its subsidiaries, Quintel USA, Cirtek Electronics Corp. (CEC), and Cirtek Advanced Technologies and Solutions, Inc. (CATSI).
“I understand that Cirtek is eyeing new markets that would expand the product portfolio of its subsidiaries. With these activities, Cirtek’s units are well-positioned to bene...Read more
Jan 12, 2021
Cirtek Electronics Corporation reported that its revenues will get a 20 percent boost this year as it ramps up productionRead more