Cirtek raises $67M from preferred shares issuance
Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. has raised $67 million from its maiden issuance of US dollar-denominated preferred shares, making it the second company to issue this kind of instrument at the local equities market.
In a press statement on Friday, Cirtek said demand for Cirtek’s offering was “significant, in particular from retail investors.”
Proceeds will be used to fund future growth, research and development and pare debt after its acquisition of US-based antenna solutions provider Quintel.
”At the higher end of the pricing range of 6.25-6.75 percent per annum, indicative demand was $110 million. We eventually settled for a dividend rate of 6.125 percent per annum which was still within Cirtek’s blended cost of debt, and at the same time gives a very decent return to investors,” Cirtek chief finance officer Anthony Buyawe said in a press statement on Friday.
“The successful issuance of dollar preferred shares places the company in a strong position to pursue strategic and growth initiatives leading to an expanded international presence,” Buyawe added.
“The strong reception from retail investors reflect the growing acceptance and demand for dollar denominated products in the Philippine capital market,” said Roberto Juanchito Dispo, Cirtek vice chair and chief executive officer.
“We held roadshows in Manila, Cebu and Davao during the offer period, and saw that Filipinos are in fact already diversifying their investments into dollars,” he added.
BPI Capital Corp. acted as the sole issue manager and bookrunner for this issuance. Joint lead underwriters are BPI Capital and RCBC Capital.
Cirtek was originally planning to offer a maximum of 200 preferred shares, raising at least $120 million plus additional $80 million in case of oversubscription.
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