LISTED technology firm Cirtek Holdings Philippines Corp. said that its management had recently approved the issuance of perpetual peso-denominated shares of up to P3.5 billion, including an oversubscription option of P1 billion.
In a disclosure on Tuesday, Cirtek said that its board of directors had given the greenlight for the firm to issue up to P70-million “Preferred Class B-2 Shares” with a par value of P1 apiece and an offer price of P50 per share.
The offer size will reach up to P2.5 billion in aggregate value, consisting of 50 million preferred shares, and an oversubscription option of 20 million shares valued at P1 billion.
Cirtek’s preferred shares will be issued in two series, namely: the “Preferred B-2 Subseries C Shares” and “Preferred B-2 Subseries D Shares.”
Separately, the Securities and Exchange Commission (SEC) said in a statement that it had “considerably favored” Cirtek’s public offering of entitlement rights worth up to P1.81 billion, subject to certain requirements.
“Cirtek will offer entitlement rights to 250 million common shares of the company, 250 million bonus detachable warrants that will be free of charge, and 250 million common shares underlying the bonus detachable warrant, with an exercise price of P4.50 to P7.25 each,” the SEC said on Tuesday.
The firm expects to raise up to P1.79 billion from its entitlement rights offer based on the highest offer price per share.
Proceeds from the offer will be used to refinance existing debt or pay out the short-term obligations of the company’s subsidiary, Cirtek Electronics Corp. (CEC), and fund the working capital of the listed company’s units Quintel USA, Inc., CEC, and Cirtek Advanced Technologies and Solutions, Inc.
Proceeds from the exercise of the bonus detachable warrants will be used to finance the working capital of the abovementioned subsidiaries, the corporate regulator said.
The offer period for the entitlement rights will run from July 9 to 21, with the shares scheduled to be listed and traded in the Philippine Stock Exchange.
On Tuesday, shares in Cirtek slipped by 0.7% to close at P5.68 each at the stock exchange. — Angelica Y. Yang
