Cal-Comp set to hold IPO

Consumer electronics producer Cal-Comp Technology (Philippines) Inc., a unit of Taiwan-based New Kinpo Group (NKG), filed on Friday an application to raise as much as P6.77 billion from an initial public offering.

Based on the preliminary prospectus filed with the Securities and Exchange Commission, Cal-Comp plans to sell up to 397.97 million new common shares at a maximum of P17 per share, bringing about 26.77 percent of the company’s shares to public hands.

The offer consists of 378.07 million common shares but the firm seeks the option to raise it by up to 19.9 million.

IPO proceeds will be used for expansion. Cal-Comp Tech plans to build new factories in the Philippines to ramp up production and introduce new products to the market.

“The Philippines has become one of our key manufacturing hubs in Southeast Asia, and we want to expand our foothold here through an initial public offering. We believe our expansion will enable Filipinos to become more competitive in export manufacturing and tech R&D (research and development). It’s also an opportune time for the Philippines to be exposed to tech products that will truly bring homes and industries to the future,” Cal-Comp president and NKG CEO Simon Shen said in a statement.

NKG is the largest Taiwanese investor in the Philippines. It is a $6.30-billion firm engaged in global electronic manufacturing services and original design manufacturing. It produces multiple product lines, including external hard disk drives, TVs, all-in-one PCs, laser printers, smart home appliances, power supplies, 3D printers, innovative smart beauty mirrors, AI (artificial intelligence) humanoid robots and integrated circuits for cloud computing.

Its other businesses in the Philippines are: Cal-Comp Precision (Philippines) Inc. and AcBel Polytech (Philippines), Inc., which produce injection molded plastic precision parts and power supplies products for global clients.

Cal-Comp Tech currently employs over 6,000 people in its manufacturing facilities at the Lima Technology Center in Lipa City and at the First Philippine Industrial Park in Sto. Tomas, Batangas.

In 2017, Cal-Comp Tech booked revenue of $210.72 million and net income of $7.31 million. In the first quarter of 2018, revenue hit $74.18 million while net income was $6.33 million.

BDO Capital & Investment Corp. is the issue manager and sole bookrunner for the offering.—DORIS DUMLAO-ABADILLA