Semicon firm secures PSE, SEC approvals
LAGUNA-BASED semiconductor maker Cirtek Holdings Philippines Corp. on Tuesday said it has secured all necessary approvals to go ahead with a follow-on offering of up to P2.88 billion to fund long-term plans.
The Philippine Stock Exchange (PSE) approved the follow on offer on Monday, one week after the Securities and Exchange Commission (SEC) gave the company the green light.
The final offer price will be determined on October 21, not on November 5 as earlier announced. The offer period is from October 23 to 30. The primary shares will be listed on the PSE Main Board on November 5.
The PSE also approved a change in Cirtek’s ticker symbol to TECH from CHIPS.
The share sale involves 120 million common shares at not more than P24 apiece, consisting of 80 million primary shares and 40 million in case of an oversubscription.
After the follow-on offer, the company will have a total of 419.063 million outstanding common shares.
The company is keen on a follow-on offering to finance its acquisitions of small- to medium-sized semiconductor manufacturers.
The estimated net proceeds of P2.783 billion will be used for strategic acquisitions (P630.7 million), capital expenditures (P631.9 million), payment of financial obligations (P278.2 million), and working capital (P314.1 million).
First Metro Investment Corp. and SB Capital Investment Corp. are the joint lead underwriters for the transaction.
The company aims to grow by developing its own products and brands and becoming an open equipment manufacturer (OEM) that sells finished products. Its present open-source-appropriate technology (OSAT) allows others to freely use, modify and distribute Cirtek’s designs.
The company booked $3 million in profit during the first half of 2015, up 42 percent from $2.1 million a year earlier.