The Securities and Exchange Commission approved an increase in the capital stock of Cirtek Holdings Philippines Corp. to P860 million from P560 million, a move that will allow the company to raise fresh funds through the sale of preferred shares.
Cirtek said in a disclosure to the stock exchange the higher capital would create 270 million new preferred B shares with a par value of P1 apiece and 700 million preferred A shares at P0.10 per share.
“Since the authorized capital stock of the corporation is almost fully subscribed, the corporation has very limited ability to raise equity capital for its business needs. The proposed resolutions to increase the authorized capital stock will give the corporation the flexibility to source funds for its expansion program,” Cirtek said.
The company earlier announced plans to issue 200 million preferred shares at an offer price of $1 apiece to raise as much as $200 million to fund expansion plans.
The features of the planned preferred shares offering are still being finalized.
Cirtek in July said it acquired a 100 percent stake in Quintel, a leading provider of advanced high-efficiency, high-performance antenna solution headquartered in New York, USA for $77 million.
The acquisition, Cirtek said, would give the company a significant presence in the large and rapidly growing base station antenna market, estimated to be more than $14 billion by 2020.
Quintel is a leading innovator of spectrum and space-efficient base station antennas for wireless networks. It designs, develops and delivers advanced high-efficiency and high-performance antenna solutions that help mobile operators to increase efficiency, enhance quality-of-service, slash costs and accelerate return on investments.
Cirtek over the next couple of years plans one or two more acquisitions in line with its thrust to venture into the high growth and profitable margin technology business.
With the recent acquisition of Quintel, Cirtek has increased its projected revenues this year to $125 million, up 25 percent from the original target of $100 million.
Share price of Cirtek on Tuesday gained 1.2 percent to P42.