Cirtek raises $67 M preferred share offering
Cirtek Holdings Philippines Corp. raised $67 million from the issuance of dollar-denominated preferred shares.
There was strong demand for the shares, particularly from retail investors, the company said.
“At the higher end of the pricing range of 6.25- 6.75 percent per annum, indicative demand was $110 million. We eventually settled for a dividend rate of 6.125 percent p.er annum which was still within Cirtek’s blended cost of debt, and at the same time gives a very decent return to investors,” said Cirtek CFO Anthony Buyawe.
“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,” Buyawe said.
Cirtek vice chairman and CEO Roberto Juanchito Dispo, for his part, 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,” Dispo said.
Proceeds from the offering will be used to partly fund strategic acquisitions, and for debt retirement, capacity expansion, and research and development.