Semiconductor firm Cirtek to hold IPO
Laguna-based semiconductor manufacturer Cirtek Electronics Corp. seeks to debut on the Philippine Stock Exchange through an initial public offering of shares worth as much as P660 million by September.
In a prospectus filed at the Securities and Exchange Commission, Cirtek proposed 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 34 percent of its outstanding stock after the IPO.
“It depends on the SEC and PSE approvals but we hope (to do it) by September,” said Eduardo Francisco, president of BDO Investment and Capital Corp., the IPO underwriter.
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.
“Beginning the third quarter of 2011, the Cirtek group will embark on a three-year expansion program to increase business and to expand its customer base. The expansion program will entail the construction of a third building at its current manufacturing complex in Biñan, Laguna. This will add 180,000 square feet of manufacturing space,” the initial offer prospectus indicated.
Cirtek is owned by Taiwanese-Filipino businessman Jerry Liu who also leads the Figaro coffee and Angel’s pizza chain.
It reported consistent profitability in its 26 years in operations. The requirement for listing is a track record of only three years.
The company has two factory buildings in Laguna.
Going public is also seen to boost Cirtek’s branding in international markets.
Cirtek has about 1,400 employees, which may increase by about 15 percent this year based on the projected rise in new business to be generated by the firm.
It ships out 18-20 million semiconductor device units per week for the communications, networking, computing, industrial and automotive.
About 39 percent of Cirtek’s business is generated from Europe, 38 percent from the US and 23 percent from Asia-Pacific.
