Ayala electronics unit working on public offering
MANILA, Philippines—Ayala-led Integrated Microelectronics Inc. has committed to remain listed on the Philippine Stock Exchange, expecting to pursue an initial public offering by the end of this year or next year.
When the electronics manufacturing services firm listed by way of introduction or without an IPO in 2010, it was required to conduct a public offering within a year but it was unable to do so because of weak market conditions. It thus had to seek a grace period from PSE on the IPO requirement although at the end of last year, it was able to comply with the minimum public float requirement of 10 percent for continued listing.
“Our interest is to stay as a listed company on PSE,” Jaime Augusto Zobel de Ayala said during the company’s stockholders meeting on Friday.
In a press briefing after the stockholders meeting, IMI chief finance officer Jerome Tan said IMI would like to get the “optimum” price when it sells shares to the public. At present, however, he said global market conditions were still quite soft and not favorable for the export-oriented IMI to rush into the market.
IMI has grown from a Philippine-based electronics manufacturer in 2002 to a global company with manufacturing and engineering hubs in Asia, North America and Europe. Only 24 percent of its production capability is now anchored on the Philippines. The company has grown to be the 20th largest electronics manufacturing (EMS) services provider in the world in terms of revenues, based on a ranking made by US-based EMS trade publication Manufacturing Market Insider.
Tan said there were signs of global recovery this year. He thus said it could be either at the end of this year or next year, when asked about the possible timetable for an IPO.
“Despite global uncertainties and challenges in major markets, we are undaunted that we will soar higher in 2013,” said IMI president Arthur Tan during the stockholders meeting. During the news briefing, he added that this year would likely be better for the company in terms of revenues, net profit and margins.
IMI grew consolidated sales revenues by 15 percent last year to $661.8 million, resulting in a net profit of $5.4 million compared with $3.3 million in 2011. The double-digit rise in revenues was on the back of acquisitions as well as business expansion of key customers.
“We will look more aggressively for pockets of growth in every region, even as we continue to leverage our presence in China, whose economy is expected to continue growing at a fast rate of more than 8 percent in 2013. We will also capitalize on the trend of return to regionalization as original equipment manufacturers in North America and Europe aim to lower their cost production,” the IMI chief said.
The regionalization trend means that manufacturers like IMI are finding it more cost-efficient to set up factories closer to where its buyers are instead of spending a lot on transportating these products.
IMI aims to continue leveraging on the trend of increasing electronic content in vehicles, the emerging applications of electronics in industrial and medical industries, the developments in LED lighting and the rise of even more sophisticated connectivity devices.
