CAL-COMP Technology (Philippines), Inc. has withdrawn its plan to conduct an initial public offering (IPO) for a second time, saying the initial market valuation “do not fully reflect” its strong financial performance.
In a letter to the Philippine Stock Exchange (PSE) dated Nov. 4, Cal-Comp said it has decided to defer its IPO after extensive discussions with its underwriters, BDO Capital & Investment Corp. and Maybank Kim Eng Securities Pte. Ltd.
“The issuer believes that the initial valuations indicated by the market does not fully reflect the issuer’s strong performance and growth prospects,” the local unit of Taiwan-based New Kinpo Group said.
“Furthermore, due to volatile market conditions, the issuer has decided that it will be in its best interest to defer its offering and re-evaluate its listing plants,” it added.
Last year, Cal-Comp postponed its IPO due to market volatility.
Cal-Comp’s plan this year was to offer 371,423,100 common shares with an over-allotment option of 55,713,500 common shares from Nov. 11 to 18. Each share was priced at a maximum of P25 and will be equivalent to 28.87% of the company.
The company hoped to raise P8.834 billion from the IPO, which will be used to expand its facilities, fund capital expenditures, repay debts, finance research and development, and boost its working capital.
Cal-Comp is in the business of manufacturing electronic products such as data storage products, calculators, pachinko displays, smart home appliances and smart beauty products.
Moving forward, Cal-Comp said it wants to “focus on the growth of its business in the Philippines and ensure that its targets continue to be met.”
Among the plans it earlier disclosed is building a 24,000-square meter facility in Lipa, Batangas and undertaking the expansion of its manufacturing complex in Sto. Tomas, Batangas.
With Cal-Comp deferring its IPO, only one more public listing is scheduled until yearend — Fruitas Holdings, Inc., which will offer 533,660,000 shares with an over-allotment option of up to 68,340,000 shares on Nov. 18-22.
Three companies have so far gone public this year: Kepwealth Property Phils, Inc. in August and Axelum Resources Corp. and AllHome Corp. both in October. — Denise A. Valdez
