Cirtek Holdings Corp. said it is setting the rights ratio of stock rights offering at one right for every 1.68 Cirtek common shares each held by its shareholders.
This follows after the Philippine Stock Exchange (PSE) approved the company’s fund-raising activity of P1.3 billion.
The company is making available to shareholders 249.44 million unissued shares of the company through a rights offer at an offer price of P5.50 per share.
Each share carries a detachable warrant that the holder can use to acquire additional Cirtek shares at a strike price of between P4.50 and P7.25, starting on the 12th month after the stock rights offer and until the 36th month or three years after. The warrants will also be listed with the PSE.
Cirtek said it intends to use the proceeds of the stock rights offer to refinance existing debt and short-term obligations of unit Cirtek Electronics Corp. and) finance the working capital of Quintel USA, CEC and Cirtek Advanced Technologies and Solutions, Inc.
Tapped as joint issue manager and lead underwriters are Abacus Capital and Investment Corp. and PNB Capital and Investment Corp.
