Cirtek to beef up capital to P2B

LAGUNA-based chip-maker Cirtek Philippines Holdings Corp. seeks leeway to jack up its capital stock by more than three-fold through the future issuance of new common shares and preferred shares.

Bracing for expansion opportunities, the board of Cirtek approved in a special meeting the increase in its authorized capital stock to P2 billion from from P560 million, the company disclosed to the Philippine Stock Exchange on Tuesday.

“The increase in authorized capital will provide the company the flexibility to address future business opportunities and financial requirements,” Cirtek chief finance officer Anthony Buyawe said, when asked about the rationale for this capital build-up program.

Buyawe noted that the implementation of the capital increase would be determined by the board.

The proposed new capital stock of P2 billion will consist of P1.4 billion worth of common shares with a par value of P1 per share and P600 million worth of preferred shares. The preferred shares component will consist of 140 million worth of preferred A (only for local investors) shares with a par value of P0.10 per share and P460 million worth of new preferred shares.

The board also approved the declaration of a 10 percent stock dividend for each of the 419.063 million issued and fully paid common shares and 400 million issued and fully paid preferred shares of Cirtek.