CIRTEK Holdings Philippines Corp. has started offering dollar-denominated preferred shares to raise as much as $140 million to fund expansion plans.
“This will allow us greater financial flexibility to pursue our expansion plans for the group, particularly Quintel,” Cirtek Chief Finance Officer Anthony Buyawe said.
The offer period started on Thursday and will end on November 29, with a tentative listing date of December 8 on the Philippine Stock Exchange.
The preferred shares are offered at $1 each for a minimum subscription of $1,000 and at increments of $100 thereafter.
Cirtek set a dividend rate of 6.125 percent on the shares, to be paid quarterly in the first five years. If the preferred shares are not redeemed in five years, the dividend rate will rise to 9.125 percent.
The company will be heading to Cebu and Davao this week to conduct a road show for potential buyers.
“The company already secured firm offers for the $60 million base amount and expects strong demand for the $80 million set aside as greenshoe option,” Cirtek said.
Of the total amount, about $92.6 million will be allotted to pay debt obligations following Cirtek’s acquisition of Quintel Cayman Ltd., and fund strategic acquisitions “to substantially drive revenues of the US base station antenna manufacturer in the next five years.”
“The balance will be for working capital and other capital expenditures,” the company said.