Cirtek Holdings Philippines Corporation is planning to raise up to P3.5 billion from the issuance of non-voting and non-convertible Peso-denominated perpetual preferred shares.
In a disclosure to the Philippine Stock Exchange, the firm said the planned issuance has been approved by its Board of Directors last June 14.
Cirtek is planning to issue up to 70 million cumulative, non-voting, non-participating, non-convertible, redeemable, Peso-denominated, perpetual Preferred B2 Shares with a par of P1.00 per share at an offer price of P50.00 per share.
The offer consists of up to 50 million preferred shares worth P2.5 billion in aggregate issue value and an oversubscription option of up to 20 million preferred shares worth P1 billion.
Last April, Cirtek reported that its P1 billion commercial paper (CP) offering was more than four times oversubscribed at a time of monetary easing and consecutive rate cuts by central banks both locally and international.
The firm listed the P1 billion worth of CPs with the Philippine Dealing and Exchange Corp as part of Cirtek’s P6 billion CP Program.
Multinational Investment Bancorporation acted as sole arranger and lead underwriter of the issue.
TECH’s commercial paper offering has been assigned a credit rating of PRS A (corp.) with a Stable Outlook by the Philippine Ratings Services Corporation (PhilRatings).
The company intends to use the proceeds from the offer to partially retire its short-term obligations maturing in 2021.
Proceeds will also refinance working capital of its subsidiaries, namely Quintel USA, Cirtek Electronics Corp. (CEC) and Cirtek Advanced Technologies and Solutions, Inc. (CATSI) as it takes part in the creation of a truly 5G enabled world.
Quintel USA designs, develops and delivers advanced high efficiency, high-performance antenna products and solutions that help mobile network operators increase efficiency, enhance quality-of-service, slash costs and accelerate returns.
CATSI manufactures valued added, highly integrated microwave and millimeter wave technology products catering to the military, telecommunications, satellite communications, enterprise networks, automotive radar, semiconductor test boards, and industrial segment.
CEC provides fully integrated assembly, packaging and test and turnkey solutions of semiconductor devices.