Technology company records for the IPO of P6.8-B

By Arra B. Francia Reporter

LOCAL UNIT of Taiwan-based technology conglomerate New Kinpo Group (NKG) seeks to increase P6 .77 billion through an initial public offering (IPO) in the year, as it aims to increase the production capacity in the country.

In an email to reporters Friday, the Securities and Exchange Commission said Cal-Comp Technology (Philippines), Inc. filed a registration statement regarding its plans to sell up to 378, 07 million shares with an over allocation option of up to 19.9 million shares at a maximum price of 17 P17 each.

The offer includes approximately 26.77% of

Cal-Comp Tech is part of NKG, which provides customers with global electronics manufacturing services and original product design services.

The company's products and services include storage, printers and the network. storage (NAS), wireless and broadband, digital home, consumer electronics, 3D printing, robotics and emerging technologies, among others.

In addition to Cal-Comp Tech, Cal-Com Precision (Philippines), Inc. and AcBel Polytech (Philippines), Inc. The latter produces precision injection-molded plastic parts and feed products for customers world.

Cal-Comp Tech opened its first factory in Batangas in 2015, which spans 140,000 square meters. facilities. He currently employs more than 6,000 people at the Lima Technology Center in Lipa and the first Philippine Industrial Park in Sto. Tomas, Batangas

The company is seeking to use the product of the offer to build new manufacturing facilities in the country because it plans to introduce new products to the domestic market.

NKG Chief Executive Officer and Cal-Comp Tech Chairman Simon Shen said the planned stock sale will help the company gain a foothold in the country because it has become one of the the group's main manufacturing centers in Southeast Asia.

The Batangas factory is the 19th ^{] manufacturing center in Southeast Asia.}

"We believe that our expansion will allow Filipinos to become more competitive in manufacturing for export and R & D technology (research and development) .This is also a timely moment for the Philippines to be exposed to technological products that will really bring homes and industries in the future, "Shen said in a statement.

The company seeks to conduct the IPO before the year … end, but has not given a specific date. BDO Capital & Investment Corp. is the manager of the offer and the only book runner programs.

Cal-Comp Tech's planned IPO comes at a time when the market continues to show volatility after dropping 9,078 on January 29th. a minimum of 6929 last week. The index is currently in the so – called bear market, indicating that it has dropped at least 20% from a recent high.

Last week saw the conduct of the first IPO of the year, where real estate developer and construction company DM Wenceslao & Associates, Inc. raised 8.8 billion pesos. The stock lost 14.5% to 10.26 pesos at the end of its first trading session last week, the overall negative sentiment weighing on its performance

Del Monte Philippines, Inc., maker of canned goods fruit, which was to lift the P17. 55 billion by an IPO before DMW, has postponed its plans due to bearish market conditions.

Asked if it's a good idea to carry an IPO given the current volatility, BDO Capital's president Eduardo V. Francisco told Cal-Comp Tech "We just have to be ready because the markets can be s & # 39; "Improve at any time," said Francisco in a text message.

Meanwhile, Timson Securities, Inc. Jervin Trader S. De Celis said the performance of the IPO will depend on the timing.

"But I think the funds they collect are smaller than the previous IPOs we've seen and sometimes the market players take that into account." If the company's market capitalization is This may be of interest to actors in the short term, and we will first have to look at its fundamentals and assess whether demand will be strong or not, "said de Celis in a separate message