November 9, 2017. MANILA, Philippines — Cirtek Holdings Philippines Corp. secured the approval of Securities and Exchange Commission (SEC) and Philippine Stock Exchange (PSE) on its preferred shares that will raise up to $120M with green shoe option, primarily to fund the company’s further expansion.
Cirtek, the country’s leading wireless and communications technology company, has created new preferred shares that will be sold to investors between November 16-29 to raise up to $120 million. Listing is on December 8.
Anthony Buyawe, chief finance officer of Cirtek, said the company expects to set the dividend rate of preferred shares it will sell within a 6.25% and 6.75% range.
Mr. Buyawe, who is also Cirtek’s treasurer, said that proceeds from the sale of the preferred shares will be used to fund other acquisition and expansion plans to complement its recent purchase of Quintel, a leading antenna solutions provider in the United States.
Cirtek expects Quintel, which the Philippine-listed company acquired in August, to drive revenue starting this year. Quintel will contribute 18% to group sales this year and around 50% next year, when Cirtek will enjoy the full-year benefit of the acquisition, Mr. Buyawe said.
Quintel, which produces state-of-the-art antennas that are sold mainly to U.S. telecommunications giants Verizon and AT&T, is expected to add $20 million to Cirtek revenue this year and $100 million in 2018.
The company said that the goal is to grow Quintel into a $500M to $1B company to qualify for NASDAQ listing in five years.
Cirtek expects to produce around 750 antennas for Quintel every week by year end and at least double that output by early next year.
The company has mandated RCBC Capital and BPI Capital to arrange the sale of dollar-denominated stocks.
Cirtek Holdings Philippines Corporation (CHPC) is the holding company of Cirtek Electronics Corporation (“CEC”) and Cirtek Electronics International Corporation (“CEIC”), (collectively the “Cirtek Group”). Through its subsidiaries, the Company is primarily engaged in two major activities: (1) providing complete manufacturing solutions for value-added, highly integrated radio frequency (“RF”), microwave and millimeterwave technology products, and (2) providing full service/turnkey solutions including wafer probing, wafer back grinding, assembly, packaging and final testing of semiconductor devices.
CHPC through its subsidiaries harnesses more than 54 years of combined operating track record. The Company’s products cover a wide range of applications and industries, including communications, consumer electronics, power devices, computing, automotive, and industrial.
CHPC is listed on the Philippine Stock Exchange in November 2011 and carries the ticker symbol “TECH”.
Forward Looking Statements
This press release contains statements about future events and expectations that constitute “forward-looking statements.” These forward-looking statements include words or phrases such as the Company or its management “believes”, “expects”, “anticipates”, “intends”, “may”, “plans”, “foresees”, “targets”, “aims” “would”, “could” or other words or phrases of similar import. Similarly, statements that describe the Company’s objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements speak only as at the date of this press release and nothing contained in this press release is or should be relied upon as a promise or representation as to the future.