Pointwest Technologies Corp., a business outsourcing company, has deferred its planned P2.08-billion initial public offering.
Pointwest president Maria Cristina Coronel said in a letter to the Securities and Exchange Commission the company decided to postpone the IPO pending the review of its first-half 2016 financial performance.
Several companies that previously planned to go public this year, including Datem Inc. and DM Wenceslao & Associates Inc., also delayed their listing plans because of current volatile market conditions.
Datem, which planned to raise as much as P4.66 billion from the IPO, would likely push through with the initial offering in the second half of the year, while DM Wenceslao has noted firmed up its P12.3-billion maiden share offering.
SB Capital & Investment Corp. president Emilio Federico Galang III in a text message confirmed Pointwest’s decision to postpone the IPO. SB Capital is one of the the underwriters of the Pointwest IPO.
Pointwest Technologies, according to the registration statement it earlier filed with the SEC, planned to sell up to 417 million common shares with an over allotment of 62.55 million common shares at the offer price of up to P4.35 per share.
The company plans to use proceeds from the offering to finance the expansion of delivery centers within the Philippines and US sales operations, development of digital products and the acquisition of applications and proprietary technologies
Point West is a leading 100-percent Filipino-owned service company with a proven track record in the information technology and business process management industry.
The company provides non-voice, higher-value services to Fortune 500 companies and a growing number of firms in the Philippines, New Zealand and Australia.
Established by pioneers of the IT-outsourcing industry in the Philippines, the company has continued to be profitable every year since it started operations in 2003. From 2012 to 2014, the company maintained a compounded annual growth rate of 19.41 percent in net revenues.
The PSE earlier predicted that eight to 10 companies would conduct IPOs this year.
But because of adverse market conditions, PSE president Hans Sicat expects the IPO-bound companies to schedule their listing plans in the second half of the year.