Cirtek Holdings Philippines Corp has raised $67 million from the issuance of its dollar-denominated preferred shares becoming the second company in the country to issue this kind of instrument at the local equities market.
Proceeds from the preferred shares, also called TECH shares offering will be used to partly fund strategic acquisitions, and for debt retirement, capacity expansion, and research and development.
The shares were listed on the Philippine Stock Exchange on Friday.
BPI Capital Corp is the sole issue manager and bookrunner. Joint lead underwriters are BPI Capital and RCBC Capital.
Cirtek CFO Anthony Buyawe, noted at the higher end of the pricing range of 6.25-6.75 per cent per annum, indicative demand was $110 million.
“We eventually settled for a dividend rate of 6.125 per cent p.a. which was still within Cirtek’s blended cost of debt, and at the same time gives a very decent return to investors,” Buyawe said.
According to Cirtek vice chairman and CEO Roberto Juanchito Dispo, Filipinos are already diversifying their investments into dollars, as shown in the results of the company’s roadshows in the country’s three main cities Manila, Cebu, and Davao during the offer period.
“The strong reception from retail investors reflect the growing acceptance and demand for dollar denominated products in the Philippine capital market,” Dispo said.
Buyawe noted the successful issuance of dollar preferred shares places Cirtek in a strong position to pursue strategic and growth initiatives leading to an expanded international presence.
Through its subsidiaries, Cirtek primarily provides service/turnkey solutions including wafer probing, wafer back grinding, assembly, and packaging and final testing of semiconductor devices. It also offers manufacturing solutions for value-added, highly integrated radio frequency, microwave and millimeterwave technology products.