Cirtek Holdings Philippines Corp. (PSE: TECH) had raised $67 million from the issuance of dollar-denominated preferred shares. The company said that demand for TECH’s dollar-denominated preferred shares was significant, in particular from retail investors.
“At the higher end of the pricing range of 6.25-6.75% p.a., indicative demand was $110 million. We eventually settled for a dividend rate of 6.125% p.a. which was still within Cirtek’s blended cost of debt, and at the same time gives a very decent return to investors,” Cirtek CFO Anthony Buyawe said. “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.”
“The strong reception from retail investors reflect the growing acceptance and demand for dollar denominated products in the Philippine capital market,” said Roberto Juanchito Dispo, Vice Chairman and CEO of Cirtek. “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.”
Proceeds from the preferred 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 December 8.
BPI Capital Corporation is the sole issue manager and bookrunner. Joint lead underwriters are BPI Capital and RCBC Capital.