Local unit of Taiwan electronics firm revives IPO plan

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By Arra B. Francia
Senior Reporter

CAL-COMP Technology (Philippines), Inc. has revived its plan to conduct an initial public offering (IPO) in a bid to raise up to P10.68 billion in fresh capital within the year.

In a registration statement filed with the Securities and Exchange Commission Monday, the company said it will offer up to 371.42 million common shares with an over-allotment option of up to 55.71 million shares. The offer price may reach up to P25 each.

Projected funds under the revised application are bigger than the P6.77 billion the company initially sought to raise in 2018.

The local unit of Taiwan-based tech conglomerate New Kinpo Group (NKG) postponed its IPO scheduled for September 2018 due to volatile market conditions. At the time, the Philippine Stock Exchange index had entered bear territory, trading around the 7,200 level, 20% lower than its peak of 9,078 in January last year.

Cal-Comp Tech expects to conduct the offering from Nov. 4 to 11. Its shares will then be listed on the main board of the Philippine Stock Exchange on Nov. 18 under the ticker CCPH.

The company looks to raise a net P8.805 billion from the offer, excluding the over-allotment option. Of this amount, P3.5 billion will be used to expand its facilities in Lipa, Batangas until 2024. About P2.7 billion will go to acquisition of production machineries in line with its plant expansion, while the rest will be for debt repayment, research and development, and working capital.

It hired BDO Capital & Investment Corp. and Maybank Kim Eng Securities Pte. Ltd. to be the transaction’s joint global coordinators and joint book runners, with the latter also acting as international lead underwriter.

Maybank ATR Kim Eng Capital Partners, Inc. and BDO Capital were also tapped as joint domestic lead underwriters.

Cal-Comp Tech started operations in the Philippines in 2012, offering global electronic manufacturing services and original design manufacturing services to its customers. It parent NKG was founded in Taiwan back in 1973, and also has operations in other Asian countries such as China, Malaysia and Thailand.

Sought for comment, Timson Securities, Inc. Equity Trader Jervin S. De Celis said the company may have been encouraged by Kepwealth Property Phils, Inc.’s (KPPI) IPO performance.

Shares in KPPI have steadily risen since its market debut, ending Tuesday at P11.22 each, about double its P5.74 IPO offer price.

“Our index is also not in a bearish phase and many second and third liners have been surging from the past few days which is a sign that investors are on risk mode despite the negative news that we get abroad, such as the trade war, inverted yield curve, etc.,” Mr. De Celis said in a mobile phone message.

Cal-Comp Tech could be the fourth company to go public this year, following KPPI and the scheduled IPOs of coconut product manufacturer Axelum Resources Corp. (P7.695) and home improvement supplies retailer AllHome Corp. (P20.7 billion) in October.

On the other hand, Del Monte Pacific Limited (DMPL) remains on wait-and-see mode for its prospective P17.55-billion IPO, initially scheduled in 2018.

“We are still monitoring market conditions,” DMPL Chief Corporate Officer Ignacio Carmelo O. Sison said in an e-mail when asked for an update on Del Monte Philippines, Inc.’s maiden share offer.