Cal-Comp Technology (Philippines) Inc. deferred a planned P10.67-billion initial public offering due to weak market response and volatile market conditions.
“After careful consideration, including extensive discussions with the underwriters, the company has decided not to pursue the Offering at this time. The company believes that the initial valuations indicated by the market does not fully reflect the company’s strong performance and growth prospects,” Cal-Comp said.
“Furthermore, due to volatile market conditions, the company has decided that it will be in its best interest to defer its Offering and re-evaluate its listing plans. In the meantime, the company will continue to focus on the growth of its business in the Philippines and ensure that its targets continue to be met,” it added.
This is the second time that Cal-Comp deferred the planned IPO. Cal-Comp first filed an IPO application in June 2018 with the Securities and Exchange Commission. It was looking at that time to raise as much as P6.77 billion in proceeds from the IPO.
But in September of the same year, it decided to defer its IPO, citing “poor market conditions.” It re-filed a new IPO application in September this year.
The company had planned to use the net proceeds from the IPO to fund expansion, capital expenditures, research and development, debt repayment and working capital requirements.
Cal-Comp is mainly engaged in the design, development and manufacture of consumer electronic products, such as data storage products, calculators, pachinko displays, smart home appliances and smart beauty products.
It forms part of Taiwan-based New Kinpo Group, which manufactures a broad range of key electronic product lines, including storage, printers, network-attached storage, wireless and broadband, digital home appliances, consumer electronics, wearables, 3D printing, robotics, power management and smart grid, industrial, automotive, security, medical/healthcare and emerging technologies.
Cal-Comp’s expansion program will entail the construction and development of the third phase of its Lima manufacturing complex in Lipa, Batangas for an additional 25,000 square meters of manufacturing space.
Sta. Lucia Land Inc. last month also decided to defer a planned P8.4-billion share sale because of volatile market conditions.