SEC approves Phoenix Semiconductor PHL's P2.65-B IPO 

South Korean-owned Phoenix Semiconductor Philippines Corp. is taking advantage of market conditions by going for an initial public offering on the Philippine Stock Exchange, a capital raising exercise the Securities and Exchange Commission approved during an en banc session Tuesday.

 

In a filing with the SEC, Phoenix Semiconductor wants to float 706.816 million shares at an IPO price of P3.76 per share to make P2.65 billion.

 

Should the Phoenix Semiconductor IPO push through, it will be the third company to list on the PSE this year – trailing developer DoubleDragon Properties Inc. and tuna cannery Century Pacific Food Inc.

 

The semiconductor maker noted in the filing the IPO shares consists of 286.093 million primary shares and 286.093 million secondary shares held by majority shareholder STS Semiconductor & Telecommunications Co. Ltd. 

 

Phoenix Semiconductor allotted 134.630 million more shares in case the IPO turns out to be oversubscribed.

 

The shares on offer will make up 25 percent of the issued and outstanding capital stock of the company post IPO.

 

The company hired BDO Capital & Investment Corp. as issue manager and lead underwriter for the transaction.

 

With the money from the IPO, Phoenix Semiconductor intends to buy machinery and production equipment to expand its manufacturing facilities at the Clark Freeport Zone, around 92 kilometers north of Metro Manila.

 

“In the second half 2014, the company will embark on a maintenance and expansion program to further enhance and expand its business and operations. The maintenance includes acquisition of machines and equipment for existing manufacturing lines. The expansion program will include existing new manufacturing facility to be built within the company’s premises,” the company said.

 

Phoenix Semiconductor is a major supplier of technology giant Samsung Electronics, and has been operating in Clark since February 2011.

 

It started commercial operations in February 2011 and has since been awarded as one of the top exporters within Clark Freeport Zone. – VS, GMA News