Cirtek raises USD67-M from preferred shares

The company told the local bourse the demand for dollar-denominated preferred shares was significant, particularly from retail investors. (Photo from http://www.cirtekholdings.com/)

MANILA— Semiconductor manufacturer Cirtek Holdings Philippines Corp. raised USD67 million from the issuance of preferred shares, proceeds of which will partly fund strategic acquisitions.

“The successful issuance of dollar preferred shares places the company in a strong position to pursue strategic and growth initiatives leading to an expanded international presence,” said Cirtek chief financial officer Anthony Buyawe.

The company told the local bourse the demand for dollar-denominated preferred shares was significant, particularly from retail investors.

Buyawe noted indicative demand was USD110 million at the higher end of the pricing range of 6.25 percent to 6.75 percent per annum.

“We eventually settled for a dividend rate of 6.125 percent p.a. which was still within Cirtek’s blended cost of debt and at the same time gives a very decent return to investors,” he said.

Cirtek Vice Chairman and Chief Executive Officer Roberto Juanchito Dispo said “the strong reception from retail investors reflect the growing acceptance and demand for dollar-denominated products in the Philippine capital market.”

“We held roadshows in Manila, Cebu and Davao during the offer period, and saw that Filipinos are in fact already diversifying their investments into dollars,” he added.

Proceeds from the preferred shares offering will be also used for debt retirement, capacity expansion and research and development.