SEC allows Cirtek to sell ₧2.5B in preferred shares

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 of about P3.5 billion, but decided to sell only up to 50 million shares.

It will raise some P1.5 billion from the sale of 30 million preferred class B-2 shares as its primary offering and an additional 20 million preferred shares as its oversubscription option, both at P50 apiece.

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

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 subseries D shares has been set at 7.7506 percent per annum.

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

Proceeds from the offer will be used to primarily finance the additional capital expenditure and equipment, partial payments of maturing preferred class B2-A shares and maturing loans and working capital of Quintel USA Inc., Cirtek Electronics Corp. (CEC) and Cirtek Advanced Technologies and Solutions Inc. (CATSI).

“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,” it said.

PNB Capital and Investment Corp. is the deal’s sole issue manager, lead underwriter and sole bookrunner.

Cirtek’s income in January to September more than doubled to $8.11 million (P408.58 million) from last year’s $3.62 million (P182.37 million).

Net sales rose 5 percent to $62.81 million from last year’s $59.52 million, mainly due to 12-percent increase in revenue contribution of CEC and 19 percent increase in revenue of CATSI.

Revenue contribution from Quintel for the nine-month period amounted to $13.4 million, the company said.

  • Oct 27, 2021

    Cirtek Holdings receives SEC’s nod to sell P3.5-b preferred shares

    Published by Manila Standard

    The Securities and Exchange Commission said Wednesday it approved the P3.5-billion preferred shares offering of semiconductor manufacturer Cirtek Holdings Philippines Corp. Cirtek was allowed to register and offer up to 50 million preferred shares at a price of P50 apiece, with an oversubscription option for another 20 million preferred shares. The company has yet to set the dividend rate for the preferred shares. The preferred shares will be listed and traded on the main board of the Philippine Stock Exchange. Cirtek will use the net proceeds from the offering wil...

    Read more
  • Jan 12, 2021

    Cirtek to raise the output of electronic parts by 20%

    Cirtek to raise the output of electronic parts by 20%

    CIRTEK ELECTRONICS Corp. aims to raise local production by 20% when it works with global consumers to provide consumer electronic components and electrical charger products.

    Read more
  • Jul 14, 2021

    Cirtek unit extends telco presence in U.S.

    Published By Maria Romero Daily Tribune

    Quintel USA Inc., the United States-based unit of Philippine Stock Exchange-listed firm Cirtek Holdings Philippines Corp., has extended a master supply agreement with two telecommunication companies in North America.

    In a disclosure, Cirtek said the agreement between Quintel USA and two unnamed carriers provides for a business extension of another five years.

    “This comes at a time following a series of new product introductions released by Quintel when fifth-generation (5G) is at an inflection point,” Cirtek said.

    It added, “Quintel’s 5G products are pre...

    Read more