CIRTEK Holdings Philippines Corp. on Monday disclosed its plan to offer stocks rights to its shareholders to raise more capital.
The company’s board approved, during its special meeting, a stocks rights offering of up to 250 million common shares which have detachable warrants, or the right to price a share.
Cirtek said the proceeds from the upcoming offer will “provide additional working capital to support the growth and strategic initiatives of the corporation’s core businesses,” though its management has yet to specify where these will be allocated.
The company will be registering the rights offer with the Securities and Exchange Commission and will list them in the Philippine Stock Exchange. It will also be subjected to the company’s approval of an increase in its authorized capital stock.
It has yet to create the terms and conditions for the offer, which will include the final issue size, entitlement ratio, offer price, payment terms, terms of the detachable warrant, and record date.
On Sept. 15, the electronic manufacturer announced that Quintel USA, Inc., its subsidiary, signed a deal to provide antennas to an unnamed telecommunications provider in the United States for a fifth-generation (5G) network rollout.
Earlier, Cirtek reissued P545.2-million bonds to support Quintel’s capital expenditures and refinance short-term loans.
In the first half, the company posted $2.63 million in net attributable profit, more than twice what it earned in the same period a year ago.
On Monday, shares in Cirtek went down 1.72% to close at P5.70 each. — Adam J. Ang
