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Cal-Comp revives IPO, eyes P10.67 billion in proceeds

Consumer electronics producer Cal-Comp Technology (Philippines) Inc., a unit of Taiwan-based New Kinpo Group (NKG), revived its planned initial public offering to raise as much as P10.67 billion in proceeds.

Cal-Comp said in a new registration statement filed with the Securities and Exchange Commission would sell up to 371,423 million in primary common shares with an over-allotment of up to 55,713 million common shares at a price of up to P25 apiece.

The shares represent approximately 25.1 percent of the issued and outstanding capital stock of the company after the IPO.

The company plans to use net proceeds from the maiden share offering to finance expansion, capital expenditure, debt repayment, research and development, and working capital.

The company’s expansion program entailed the construction and development of phase 3 of its Lima manufacturing complex in Lipa, Batangas. The expansion will add 25,000 square meters of manufacturing space.

The company is also looking to lease an additional 300,000 sq. m. of land within the First Philippine Industrial Park to expand the manufacturing capacity.  

Cal-Comp said it would need additional capital to purchase new equipment and machineries and upgrade existing facility to raise production.

Cal-Comp said it planned to repay P1.32 billion worth of debt of unit Kimpo Electronics (Philippines) Inc. to Metropolitan Bank & Trust Co. and Cathay United Bank Co Ltd. 

Cal-Comp tentatively set the offering period on Nov. 4 to 11, and the listing date on Nov. 18.

The company hired BDO Capital and Investments Corp. and Maybank Kim Eng Securities Pte. ltd as the joint global underwriters and book runner of the offering.

Cal-Comp in June 2018 initially filed an IPO request with the SEC. The company at that time had planned to raise as much as P6.77 billion in proceeds.

It deferred the IPO plan in September last year, citing “poor market conditions.”

Cal-Comp will the fourth company to conduct an IPO this year. Kepwealth Property Philippines Inc. successfully listed its shares with the Philippine Stock Exchange.

Two more IPOs are in the pipeline in October, namely coconut product manufacturer Axelum Resources Corp. and home improvement retailer All Home Corp. of the Villar Group.

Topics: Cal-Comp Technology (Philippines) Inc. , New Kinpo Group , Securities and Exchange Commission
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