SEC approves P660-M IPO plan by Cirtek

MANILA, Philippines—The Securities and Exchange Commission has approved a plan by Laguna-based semiconductor manufacturer Cirtek Electronics Corp. to raise as much as P660 million from an initial public offering at the local stock market.

The SEC en banc approved on Thursday Cirtek’s plan to offer up to 61.82 million in new common shares at an offer price of up to P10.68 per share.

This will bring to public hands about 34 percent of its outstanding stock after the IPO.

While it was earlier reported that Cirtek wants to conduct the IPO within September, the timing would depend on how soon the Philippine Stock Exchange will line up this offering and also on whether market conditions would be favorable.

“We’re waiting for PSE and (we’re) flexible as we’re still watching the market,”  Eduardo Francisco, president of BDO Investment and Capital Corp. which was mandated as the IPO underwriter, said in a text message on Thursday.

In its regulatory filing, Cirtek said net proceeds would be used primarily for the acquisition of new machinery and equipment as well as for general working capital requirements.

The Cirtek group plans to embark on a three-year expansion program to increase business and to further expand its customer base.

The expansion program will require the construction of a third building at its current manufacturing complex in Biñan, Laguna, which will add 180,000 square feet of manufacturing space and the acquisition of new equipment and machinery to increase production capacity.

Cirtek is owned by Taiwanese-Filipino businessman Jerry Liu, who also leads the Figaro coffee and Angel’s pizza chains.