Cirtek wraps up P2.2-B share sale

MANILA, Philippines - Listed electronics manufacturer Cirtek Holdings Philippines Corp. completed its follow-on offering last week, with the offer 1.5 times oversubscribed, the issuer’s underwriters announced over the weekend.

The company successfully sold 110 million shares at P20 apiece to raise about P2.2 billion.

Roberto Juanchito Dispo, president of First Metro Investment Corp., said Cirtek’s follow-own offering attracted both institutional and retail investors, resulting in an oversubscription of the issue.

“In order to meet the strong demand and to provide aftermarket liquidity, we decided to exercise 30 million shares from the oversubscription option,” Dispo said.

In a separate disclosure, Cirtek said that the offer was oversubscribed despite the prevailing market volatility.

Net proceeds amounting to P1.6 billion will be used to fund strategic acquisitions, capital expenditures, pay financial obligations and for working capital requirements.

“This transaction marks Cirtek’s successful return to the equity market after its P300 million initial public offering in November 2011,” Dispo said.

He added the enthusiastic reception by the market validates FMIC’s belief in the fundamental strength of the company.

“It has a solid organization, world-class technology, and is well-positioned in a fast-growing market. Due to all these factors, Cirtek is expected to continue providing superior returns for its investors for a long time,” Dispo said.