Ionics to list unit in S'pore stock market

Electronics firm Ionics Circuits Inc. will list its subsidiary Ionics EMS Inc. at the main board of the Singapore Exchange Securities Trading Ltd. this year to raise between P1.8 billion to P2.2 billion in fresh capital for an expansion binge.

Ionics corporate secretary Manuel Roxas advised the Philippine Stock Exchange that the company's board of directors has given the go-signal to sell about 62 million shares at a still to be determined price to pave the way for the secondary offering of the stock.

Ionics EMS is a wholly-owned subsidiary of the PSE-listed Ionics Circuits, the country's leading electronics contract manufacturer. Its planned initial public offering (IPO) in Singapore will consist of both primary and secondary shares.

The proceeds of the primary offer will be used to undertake the expansion of its contract manufacturing facilities and establish off-shore assembly plants in China and Europe. The secondary offering, on the other hand, will be earmarked for the expansion program of Ionics Circuits' other subsidiaries.

Ionics EMS provides electronic manufacturing services which now include full turnkey solutions with the implementation of its global web-based electronic commerce system. Since its spin-off in April 1999 and for the first five months of operations, Ionics EMS posted sales of P1.07 billion and a net income of P256.2 million.

"The listing of Ionics EMS will enable it to tap a highly liquid and active regional stock market which is very receptive to foreign listings and the electronics sector in particular," Roxas said.

The Singapore Exchange already hosts other major EMS industry players such as Natsteel Electronics Ltd. and Venture Manufacturing (Singapore) Ltd., both of which are among the world's top 10 EMS companies.

The company has appointed the Development Bank of Singapore as manager and underwriter/lead placement agent and Investment and Capital Corp. of the Philippines as co-placement agent for the IPO.