TAIWANESE firm Cal-Comp Technology (Philippines) Inc., an economic-zone locator that makes external hard disks in Batangas, has filed a registration statement with the Securities and Exchange Commission (SEC) for its P6.77-billion initial public offering (IPO).
Cal-Comp said in its filing it hopes to sell 397.96 million primary common shares with an over-allotment option at an indicative price of P17 apiece. The amount of shares is equivalent to 26.77 percent of the company’s total issued shares to the public.
The IPO proceeds will be used for expansion as Cal-Comp builds new factories in the Philippines to ramp up production and introduce new products to the domestic market.
The company targets to list before the end of the year.
“The Philippines has become one of our key manufacturing hubs in Southeast Asia, and we want to expand our foothold here through an IPO. We believe our expansion will enable Filipinos to become more competitive in export manufacturing and tech research and development [R&D]. It’s also an opportune time for the Philippines to be exposed to tech products that will truly bring homes and industries to the future,” said Simon Shen, Cal-Comp president, who is also the CEO of New Kinpo Group (NKG).
Cal-Comp Tech is a member of NKG, the largest Taiwanese investor in the Philippines.
NKG is a $6.3-billion firm engaged in global electronic- manufacturing services and original design manufacturing, with its product lines of mainly external hard-disk drives, TVs, all-in-one PCs, AI humanoid robots, and integrated circuits for cloud computing, among others.
NKG’s other businesses in the Philippines are Cal-Comp Precision (Philippines) Inc. and AcBel Polytech (Philippines) Inc., which produce injection-molded plastic precision parts and power-supply products for global clients.
Cal-Comp Tech currently employs over 6,000 employees in its manufacturing facilities located at the Lima Technology Center in Lipa City and at the First Philippine Industrial Park in Santo Tomas, Batangas.
In 2017 Cal-Comp Tech registered a total revenue of $210.72 million and a net income of $7.31 million. In the first quarter of 2018, the company’s revenue reached $74.18 million and a net income of $6.33 million.
BDO Capital and Investment Corp. has been picked as the issue manager and sole bookrunner for the offering.
NKG has 23 subsidiaries all over the world, seven of which are publicly listed corporations. Its employees worldwide number 20,000. It has eight R&D centers, 18 factories and five business support technical centers. These are located in Taiwan, China, Japan, Korea, Malaysia, Thailand, the Philippines, Singapore, the United States, Mexico, Brazil, Germany, Poland and the United Kingdom.