By Arra B. Francia, Reporter
CAL-COMP Technology (Philippines), Inc. plans to push through with its initial public offering (IPO) by the third quarter of this year to finance its expansion plans in the country.
The local unit of Taiwan-based technology conglomerate New Kinpo Group (NKG) initially targeted to raise P6.77 billion through the exchange in 2018, but decided to withdraw such plans due to volatile market conditions.
“We’re planning to resume the IPO in this year and the timing may be around third quarter,” Cal-Comp Philippines Vice-President and Investment Relations Officer Hugh Lo said in an e-mail.
Prior to the postponement of the IPO, Cal-Comp had already secured approval from the Securities and Exchange Commission for the fund-raising activity in September last year. The company would have to get the Philippine Stock Exchange’s go signal to proceed with the share sale.
Cal-Comp Philippines looked to sell 378.08 million shares with an over-allotment option of up to 19.9 million shares at P17 each. This is equivalent to 26.77% of the Cal-Comp’s total issued shares.
Mr. Lo said the company may adjust the size of the IPO depending on market conditions this year.
“As to the size of IPO, we’re considering the market situation as well as the EPS (earnings per share) performance. We may adjust the IPO amount when preparing to resume the IPO,” Mr. Lo explained.
The share sale will help the company strengthen its presence in the Philippines, as it looks to shift its manufacturing capacity from China.
The company’s expansion plans include a new facility in Lipa, Batangas covering 24,000 square meters (sq.m.). It also plans to develop phases two and four of its manufacturing complex in First Philippine Industrial Park, Inc., Sto. Tomas, Batangas. This will add 48,000 sq.m. of manufacturing space for the company.
Despite the postponement of the IPO, Cal-Comp pushed through with the construction of its facility in Lipa last year as it continues to see the Philippines as its next major manufacturing hub.
“The already existing business and new business under negotiation are all going very well. We believe the future of Philippine for EMS/ODM (electronic manufacturing services/ original design manufacturing) will be very promising,” Mr. Lo said.
Cal-Comp Philippines offers global electronic manufacturing services and original design manufacturing services to its customers. Its products and services include storage, printers, network-attached storage (NAS), wireless and broadband, digital home, consumer electronics, wearables, 3D printing, robotics, and emerging technologies, among others.
Apart from Cal-Comp Philippines, canned fruit manufacturer Del Monte Philippines, Inc. (DMPI) also withdrew its plans for a P17.55-billion IPO last year due to market conditions.
Sought for comment in a separate e-mail, DMPI Controller Ignacio Carmelo O. Sison said the company is still waiting for a better market situation.
“Market conditions continue to be volatile and the Company has been advised by its bankers and advisors that it would be in the best interest of the Company and DMPI to defer the Offering until such time when market conditions improve,” Mr. Sison said.
By Arra B. Francia, Reporter