THE Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) have approved Cirtek Holdings Philippines Corp.’s plan to issue dollar-denominated preferred shares with a base size of $120 million and an overallotment option of up to $80 million.
Cirtek, a listed wireless and communications technology firm, plans to issue the dollar-denominated shares to fund further expansion.
The offer period will run from November 16 to 29. The official listing of the shares will be on December 8.
Cirtek Chief Finance Officer Anthony Buyawe said the company expects to set the dividend rate within a range of 6.25 percent to 6.75 percent.
“Proceeds from the sale of the preferred shares will be used to fund other acquisition and expansion plans to complement its recent purchase of Quintel, a leading antenna solutions provider in the United States,” Buyawe added.
Last July, Cirtek acquired 100 percent of Quintel for $77 million in a bid to expand its business portfolio.
The newly-acquired firm is expected to add $20 million to Cirtek’s earnings this year and $125 million in 2018.
Cirtek also aims to grow Quintel into a $500-million revenue firm to qualify for Nasdaq listing in five years’ time.
Cirtek expects to produce around 750 antennas for Quintel every week by year-end and at least double that output by early next year.
The company has mandated RCBC Capital and BPI Capital to arrange the sale of the dollar-denominated preferred shares.