Cirtek Holdings Philippines Corp. said Thursday it obtained the approval of the Securities and Exchange Commission to issue P2.5-billion worth of preferred shares.
Cirtek said in a disclosure to the stock exchange it would offer 50 million cumulative, non-participating, non-voting, non-convertible perpetual and redeemable preferred shares at P50 apiece.
Cirtek will issue the preferred shares in two series, including Class B-2 Subseries C shares with a dividend rate of 6.5864 percent per annum, and Class B-2 Subseries D shares with a dividend rate of 7.7506 percent per annum.
The offering period will run until Dec. 3. Cirtek plans to list the preferred shares with the Philippine Stock Exchange on Dec. 14.
The preferred shares are perpetual, but they have a synthetic maturity of three and five years from the listing date.
Cirtek said the net proceeds would be used to finance the additional capital expenditure/equipment, partial payment of maturing Preferred Class B2-A shares and maturing loans and working capital of subsidiaries Quintel USA Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions Inc.
“With the success of the offering, Cirtek will continue to maintain its roadmap to achieve key engagement in the 5G market and will continue in developing and delivering innovative high-quality products, production flexibility, supply chain stability, and capability to work with customers on development of next generation products,” the company said.
The company tapped PNB Capital and Investment Corp. as the sole issue manager, lead underwriter and sole book runner for the offering.
Cirtek is a fully-integrated global technology company engaged in high-technology product development and focused on 5G wireless communication.
Share price of Cirtek rose 2.6 percent Thursday to P3.90.