Cal-Comp to go public in P6.77-B IPO this year

Cal-Comp Technology (Philippines) Inc., the local unit of Taiwan-based electronics producer New Kinpo Group (NKG) is going public this year via a P6.77-billion maiden share sale.

Based on the initial prospectus filed before the Securities and Exchange Commission (SEC), Cal-Comp plans to sell as much as 378,071,100 primary common shares at P17 per share.

Cal-Comp is in the business of global electronic manufacturing services, and original design manufacturing.

It produces multiple product lines of external hard disk drives, smart home appliances, 3D printers, laser printers, and humanoid robots.

NKG CEO Simon Shen said the initial public offering (IPO) in the Philippines has been prompted by a corporate shift to research and development in China.

“China will move towards higher level R&D, so its manufacturing component will slowly be transitioned to the Philippines,” he said.

“This IPO will allow us to raise the funds needed to support the said transition and help the Philippines enhance its manufacturing and R&D strengths,” Shen noted.

Cal-Comp is allocating P1.88 billion of the proceeds from the IPO to expand its facilities at First Philippine Industrial Park Inc. in Sto. Tomas, Batangas and Lima Technology Center in Lipa.

It also plans to spend P1.26 billion on additional land leases in First Philippine Industrial Park which covers a land area of some 300,000 square meters.

The IPO proceeds will also be used for research and development (P800 million), capital expenditure (P243.7 million), and repayment of loans (P900 million).

“We are ramping up investments in the Philippines because we believe in the country’s economic potential,” said Shen.

“With an increasingly tech-grounded world, we intend to expand Filipino’s access to technologically-advanced products, equipment, and training,” he said.

Cal-Comp has tapped BDO Capital and Investment Corp. as issue manager and sole bookrunner for the share sale scheduled before the end of the year.

Last month, property developer D.M. Wenceslao and Associates Inc. pushed through with its debut on the Philippine Stock Exchange, becoming the first company to list this year. —Jon Viktor Cabuenas/VDS, GMA News