MANILA, Philippines — The Securities and Exchange Commission (SEC) has given the go-signal for Cal-Comp Technology (Philippines) Inc. to go public.
The SEC approved the application of the unit of Taiwanese conglomerate New Kinpo Group for a planned listing tentatively on Oct. 2.
The company recently filed for a P6.77 billion initial public offering (IPO) application with the SEC. Proceeds would be used for facilities expansion, acquisition of new equipment, and research and development.
Under the plan, the company will sell up to 378 million primary common shares, with a target listing date before the end of the year.
“We believe in the Philippine economy and we leverage on the current local and global market conditions, instead of running away from them,” New Kinpo Group (NKG) and Cal-Comp Technology CEO Simon Shen said.
Shen said the weakening peso is not a threat to an export-oriented company like Cal-Comp Technology, but a favorable condition, explaining that the lower exchange rate has reduced the company’s costs and enabled it to lower its prices in terms of dollars and become more globally competitive.
Cal-Comp Technology is engaged in global electronic manufacturing services and original design manufacturing.
Because of the volatile stock market, companies have put off their listing plans.
D.M. Wenceslao & Associates Inc., was the first to brave the market this year, successfully raising P8.1 billion from its IPO.
Another company, San Miguel Food and Beverage Inc. (SMFB), the newly consolidated food and beverage subsidiary of San Miguel Corp., is planning a share sale of up to P142.8 billion.
The company plans to list tentatively in early November following a planned sale scheduled from Oct. 23 to 29. The share sale involves up to 1.02 billion secondary shares.
Part of the proceeds would be used for investments in the San Miguel Group, including capital and funding requirements of future projects.
By: Iris Gonzales, September 10, 2018
Source: The Philippine Star
Photo: Entrepreneur Philippines
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