CIRTEK Holdings Philippines Corp., a listed electronics and wireless broadband manufacturing firm, expanded its capital more than three times to cover expansion plans in the pipeline.
In a disclosure to the Philippine Stock Exchange (PSE), Cirtek said its board of directors approved in a special meeting on Tuesday a P1.44-billion increase in authorized capital stock to P2 billion from the P560,000.
“We are only increasing our authorized capital. Subscription [or sale]of shares will be made as the need arises,” said Anthony Buyawe, Cirtek chief financial officer.
The higher capitalization “will provide the company the flexibility to address future business opportunities and financial requirements,” he said.
The P2 billion capital increase consists of 1.4 billion common shares at a par value of P1, and P600 million of preferred shares that comprises 460 million shares at P1 per share and 140 million shares at P0.10 apiece.
The Cirtek board is still deciding on how to sell the shares, with its options to either make a private placement or conduct a follow-on offering.
The share sale is subject to approvals of the Securities and Exchange Commission and the PSE.
Last month, the company secured $30 million of loans from the Bank of the Philippine Islands to fund acquisitions, expansion, research and development (R&D), and development of export markets.
Cirtek is set to construct its fourth building at the Laguna complex to grow its businesses under Cirtek Advanced Technologies and Solutions Inc. (CATS) and Cirtek Electronics Corp. (CEC).
In the same disclosure, Cirtek announced a 10-percent stock dividend for shareholders of 419.063 million common shares and 400 million preferred shares on record as of November 9.