Philippines: Cirtek Holdings raises $67m in local capital market

Visual from Cirtek's website

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.

The Laguna-based electronics manufacturer is the holding firm of Cirtek Electronics Corp (CEC), and Cirtek Electronics International Corp (CEIC), or collectively the Cirtek Group.

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.

Also Read:

Cirtek Holdings Philippines acquires US antenna firm Quintel for $77m

PH-listed Cirtek Holdings invests in tech startup CloudMondo

Philippine chip-maker IMI buys 76% stake in Germany’s VIA optronics for $53.6m

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.