Cirtek Holdings Philippines Corp., a publicly traded technology company, said that its management has just authorized the issue of perpetual peso-denominated shares worth up to P3.5 billion, with a P1 billion oversubscription option.
Cirtek said on Tuesday that its board of directors has approved the issuance of up to P70 million in “Preferred Class B-2 Shares” with a par value of P1 and an offer price of P50 per share.
The aggregate amount of the offer will be up to P2.5 billion, consisting of 50 million preferred shares and a P1 billion oversubscription option for 20 million shares.
Cirtek will issue preferred shares in two series: “Preferred B-2 Subseries C Shares” and “Preferred B-2 Subseries D Shares.”
Separately, the Securities and Exchange Commission (SEC) said that it “considerably favored” Cirtek’s public sale of entitlement rights worth up to P1.81 billion, subject to certain conditions.
The SEC said on Tuesday that “Cirtek would provide entitlement rights to 250 million common shares of the business, 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.”
Based on the highest offer price per share, the company intends to generate up to P1.79 billion through its entitlement rights sale.
The proceeds of the offer will be used to refinance existing debt or pay out short-term obligations of the company’s subsidiary, Cirtek Electronics Corp. (CEC), as well as to fund the working capital of the listed company’s units Quintel USA, Inc., CEC, and Cirtek Advanced Technologies and Solutions, Inc.
According to the corporate regulator, the proceeds from the exercise of the bonus detachable warrants would be utilized to fund the working capital of the aforementioned subsidiaries.
The entitlement rights will be available for purchase from July 9 to July 21, with the shares expected to be listed and traded on the Philippine Stock Exchange.