Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. is raising $20 million from the issuance of preferred shares by way of the private placement.
Cirtek said in a disclosure to the stock exchange on Thursday it would sell 20 million B2 sub-series B shares at the subscription price of $1 per share.
Under the plan, Cirtek will use 20 million non-voting preferred shares to major shareholder Camerton Inc.
The preferred shares will be listed with the Philippine Stock Exchange.
Once the shares are listed, Camerton will also sell the preferred shares to qualified institutional buyers.
RCBC Capital Corp. and PNB Capital were tapped as joint arrangers for the fundraising activity.
Cirtek said the ultimate intended investors for the Preferred B2-B Shares of the company will be the qualified buyers.
“The initial intention of the company, as disclosed to the SEC and PSE, was to offer the preferred B2-billion shares to qualified institutional buyers. However, under the rules of the exchange, the application for listing requires that the identity of the qualified buyers be disclosed and that the subject shares have been issued to and paid by the qualified buyers upon filing of the listing application,” the company said.
“However, the qualified buyers would not subscribe to the shares until the same are listed with the PSE. Thus, Camerton Inc., a principal stockholder of the company, agreed to be the initial subscriber to the preferred B2-B shares,” it said.
The offering is expected to slightly increase Cameron’s ownership stake to 73.12 percent from 72.41 percent.
Net process from the offering will be used to refinance existing debt and finance working capital of various subsidiaries, particularly Quintel USA, Cirtek Electronics Corp., and Cirtek Advance Technologies and Solutions Inc., the group said.
Cirtek’s primary business is manufacturing various technology products in communications, consumer electronics, power devices, computing, automotive and industrial sectors.
