SEMICONDUCTOR firm Cirtek Holdings Philippines Corp. has secured the approval of the Securities and Exchange Commission (SEC) to go ahead with a P2.88-billion follow-on offering to fund its long-term expansion.
The share sale involves 120 million common shares at P24 apiece, consisting of 80 million shares as the base offering and 40 million shares for oversubscription. After the offer, the company will have 419.063 million outstanding common shares.
Since early this year, Cirtek is keen on doing a follow-on offering to finance the acquisition of small- to medium-sized semiconductor markets to grow the company.
Estimated net proceeds of P2.783 billion after offer and listing related fees and taxes will fund strategic acquisitions (P630.7 million), capital expenditures (P631.9 million), financial obligations (P278.2 million), and working capital (P314.1 million).
Hired as underwriters for the offer were SB Capital Investment Corp. and First Metro Investment Corp. First Metro is also the issue manager. The final offer price will be set on November 5, while the offer period is expected to run from November 9 to 13. The shares will be listed on the exchange’s Main Board on November 20
The company aims to expand its business by developing its own products and brands and becoming an open equipment manufacturer (OEM) that sells finished products. At present, its open-source-appropriate technology (OSAT) approach allows other to use, modify and distribute freely Cirtek’s designs.
The Laguna-based semiconductor firm booked $3 million profits in the first half of 2015, up 42 percent from $2.1 million a year earlier.