SEC approves Phoenix Semiconductor’s P2.65-B IPO

MANILA, Philippines – The Securities and Exchange Commission (SEC) on Tuesday, June 24, approved the P2.65-billion ($60.42 million) initial public offering (IPO) of semiconductor manufacturing firm Phoenix Semiconductor Philippines Corporation.

Phoenix Semiconductor is engaged in manufacturing, assembling, testing, and warehousing of semiconductor and memory devices and applications and related products. The company started commercial operations in February 2011 and has since been awarded as one of the top exporters within Clark Freeport Zone. It is a major supplier of technology giant Samsung.

Documents filed with the SEC showed that Phoenix Semiconductor will offer up to 706.816 million shares at an offer price of up to P3.76 ($0.0857) per share.

Of the total offer shares, 286.093 million shares are primary shares while another 286.093 million shares are secondary shares owned by the company’s majority shareholder, STS Semiconductor & Telecommunications Co. Ltd. The company has also set aside 134.630 million shares to cover oversubscription.

STS Semiconductor is one of South Korea’s leading providers of comprehensive semiconductor packaging and test services.

The offer shares will be equivalent to 25% of the issued and outstanding capital stock of the company upon the completion of the IPO.

BDO Capital & Investment Corporation is the issue manager and lead underwriter for the offering.

Proceeds from the IPO will be used to purchase machinery and production equipment to expand business and operations.

“In the second half 2014, the company will embark on a maintenance and expansion program to further enhance and expand its business and operations. The maintenance includes acquisition of machines and equipment for existing manufacturing lines. The expansion program will include existing new manufacturing facility to be built within the company’s premises,” Phoenix Semiconductor said.

The company will also proceed with its expansion program that aims to increase its production capacity to cater to the needs of its prospective clients. This will include acquisition of machines and equipment and construction of new production facility.

In 2013, the semiconductor firm posted a net income of P607 million ($13.84 million), up 5% from P557 million ($12.70 million) in 2012, while revenues went up 6.8% to P9.36 billion ($213.45 million) versus the year ago’s level of P8.76 billion ($199.77 million).

The semiconductor firm will be the third company to be listed on the stock exchange this year. The first two were Jollibee-led property firm DoubleDragon Properties Corporation and canned tuna manufacturer Century Pacific Food Inc. – Rappler.com