To fund expansion, Cirtek to raise $60M
Cirtek’s semiconductor production division in its Laguna hub
Listed technology company Cirtek Holdings Philippines Corp. said it would raise up to $60 million selling preferred shares.
The offer period started on Thursday and would run until Nov. 29, the company said.
“Proceeds of the sale will be used primarily to fund the company’s further expansion and debt retirement, and complement its recent purchase of Quintel, a leading antenna solutions provider in the United States,” Cirtek said.
It said the dividend rate of its dollar-denominated preferred B-2 shares was set at 6.125 percent.
This was reportedly lower than the initial estimate of 6.25 percent to 6.75 percent.
“Cirtek, being prudent, only took demand at an acceptable rate of 6.125 percent. The issue size of $60 million could support the growth target of the company moving forward. There is still an $80 million oversubscription option that will allow the company to service the expected demand come the offer period,” Luis Cruz, BPI Capital Corp.’s head of debt capital markets, said in the statement.
Cirtek announced earlier the acquisition of Quintel for $77 million.
The consolidation of Quintel into Cirtek’s books in the last five months of this year is seen to add $20 million in revenue in 2017 and more than $100 million in 2018, it had said.
Cirtek said the preferred shares were scheduled for listing on the Philippine Stock Exchange’s dollar board on Dec. 8.
