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 29, 2021

    SEC approves Cirtek’s preferred share issue

    Published by Philstar

    MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the public offering by Cirtek Holdings Philippines Corp. of up to P3.5 billion worth of preferred shares.

    In a meeting on Oct. 26, the SEC approved the registration statement of Cirtek covering 50 million preferred B-2 Subseries C and D shares at a price of P50 per share, with an oversubscription option of up to 20 million preferred shares.

    The listed tech manufacturer expects to net P3.44 billion from the offer, assuming the oversubscription option is fully exercised, proceeds of which will ...

    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
  • Mar 13, 2022

    Cirtek’s subsidiaries secure ISO certifications

    Published by Manila Standard

    Cirtek Holdings Philippines Corp. said two of its subsidiaries secured ISO certifications.

    CHP said in a disclosure to the stock exchange Cirtek Electronics Corp. and Cirtek Advanced Technology Solutions Inc. passed their ISO 14000 audits with zero non-conformance.

    “Considering the stringent requirements of an ISO 14000 certificate, the company considers this a victorious achievement,” CHP said

    CHP said passing and securing an ISO 14000 standard provides assurance that a company has effectively established and maintains adequate environmental standards and manageme...

    Read more