Electronics manufacturer Cal-Comp Technology (Philippines) Inc. deferred its planned P6.77-billion initial public offering to 2019 because of current volatile market conditions, the underwriter handling the deal said over the weekend.
BDO Capital and Investments Corp. president Eduardo Francisco confirmed in a text message that Cal-Comp was delaying the IPO to next year. “Yes, due to poor market conditions,” he said.
BDO Capital is the issue manager and sole underwriter for Cal-Comp’s IPO.
The company, which recently obtained the Securities and Exchange Commission’s approval for the planned share sale, was initially looking at October 2018 for the listing.
The bellwether Philippine Stock Exchange index fell to 7,413.15 on Friday, on concerns over the rising inflation rate which could cause another round of interest rate hikes.
Under the original plan, Cal-Comp will sell up to 378.071 million primary common shares with an over-allotment option for another 19.898 million common shares at an offer price of P17 each.
The offer shares represent 26.77 percent of the company’s total issued shares to the public.
It said the IPO proceeds would be used to build new factories in the Philippines to ramp up production and introduce new products in the domestic market.
Cal-Comp said unit Kinpo Electronics (Philippines) Inc. planned to add 48,000 square meters of manufacturing space in a facility at First Philippine Industrial Park. KPPH is also looking to lease additional 300,000 sqm of land within FPIP for capacity expansion.
Cal-Comp Tech is a member of global technology conglomerate New Kinpo Group, the largest Taiwanese investor in the Philippines.