Cal-Comp Technology files P6.77-B IPO

MANILA, Philippines — Cal-Comp Technology (Philippines) Inc., a leading consumer technology firm involved in the manufacture of multiple product lines including external disk drives, has filed with the Securities and Exchange Commission an application for a P6.77 billion initial public offering (IPO).

According to its registration statement, Cal-Comp plans to sell up to 378 million primary common shares with an over-allotment option of up to 19.8 million common shares, or about 26.77 percent of the company’s total issued shares to the public.

Cal-Comp Tech is targeting to list this year to raise funds for expansion. The company wants to build new factories in the country to ramp up production and introduce new products in the domestic market. 

Simon Shen, president of Cal-Comp Tech, said the Philippines has become one of its key manufacturing hubs in Southeast Asia.

“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. 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,” said Shen, who is also the CEO of global technology conglomerate New Kinpo Group (NKG).

Cal-Comp Tech is a member of NKG, the largest Taiwanese investor in the Philippines.

The company, which has manufacturing facilities at the Lima Technology Center in Lipa City and at the First Philippine Industrial Park in Sto. Tomas, Batangas, currently employs over 6,000 employees.

In 2017, Cal-Comp Tech registered total revenues of $210.72 million and a net income of $7.31 million.

In the first quarter, revenues reached $74.18 million while net income stood at $6.33 million.

Its parent firm NKG is a $6.3 billion firm engaged in global electronic manufacturing services and original design manufacturing, producing 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 humanoid robots, and integrated circuits for cloud computing, among others.

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

Cal-Comp has tapped BDO Capital & Investment Corp. as the issue manager and sole bookrunner for the offering.

So far, only one company has braved the stock market this year given the bearish sentiment.

Construction giant D.M. Wenceslao was the first to do an IPO this year but its shares fell to P10.40 per share during its maiden listing on Friday. This is lower than the IPO price of P12 per share.