Cirtek To Issue Preferred Shares

Cirtek Holdings Philippines Corporation (“TECH”) has disclosed that it has secured from the Securities and Exchange Commission (SEC) the permit to sell and order of registration of securities for its primary offering of up to Fifty-Million (50,000,000) cumulative, non-participating, non-voting, non-convertible perpetual and redeemable peso-denominated Preferred Class B-2 Shares.

Photo Insert: Cirtek production division

The shares have a par value of Php 1.00 per share at an offer price of Php 50.00 per share to be issued as Preferred Class B-2 Subseries C or D Shares (the “Offer”).

The public offer period is currently ongoing and will run until December 03, 2021. The preferred shares are targeted to be listed in the Philippine Stock Exchange (PSE) on December 14, 2021.

Although the preferred shares are perpetual, they have a synthetic maturity of three and five years from the listing date. If TECH does not redeem the Subseries C or Subseries D preferred shares on the third and fifth year, respectively, the company will have to pay a higher dividend rate.

The initial dividend rate of the Preferred Class B-2 Subseries C shares has been set at 6.5864% per annum while that of the Preferred Class B-2 Subseries D shares has been set at 7.7506% per annum.

The final structure of the Offer is to offer for sale or subscription of One Billion Five Hundred Million Pesos (Php1,500,000,000.00) in aggregate issue value, consisting of up to Thirty Million (30,000,000) Preferred Class B-2 Shares, composed of Preferred Class B-2 Subseries C and/or D Shares (the “Base Offer Shares”), by way of private placement, offer to qualified buyers and/or public offering at an offer price of Fifty Pesos (Php50.00) per share.

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