Semiconductor firm Cirtek still keen on P660-M IPO

MANILA, Philippines - Local semiconductor firm Cirtek Holdings Philippines Corp. is still keen on pursuing its P660-million initial public offering, according to its lead underwriter.

“It’s still a go. We’re just waiting for market conditions to improve ,” said Eduardo Francisco, president of BDO Capital & Investments Corp.

Cirtek, an independent full service solution provider for subcontract manufacturing of semiconductor devices, announced last week the deferment of its IPO, which was supposed to kick off from Oct. 12-14. The shares were supposed to be listed on Oct. 21. This was the second time the company moved the offering period.

In its letter to the Philippine Stock Exchange last week, BDO Capital said after careful consideration of current market conditions, it decided to defer the offer period and listing of Cirtek shares.

Cirtek was planning to sell to the public a total of 61.82 million common shares, accounting for up to 34 percent of its issued and outstanding capital, at a maximum price of P10.68 each share.

Headed by its chairman and president Jerry Liu, Cirtek provides turnkey solutions that include package design and development, water probing, wafer back grinding, assembly and packaging, final testing of semiconductor devices and delivery and shipment to its customers’ end-users.

Net proceeds from the offering, amounting to P628.01 million, were supposed to be used mainly for the acquisition of new machineries, and for general working capital requirements.

Beginning the third quarter this year, Cirtek will embark on a three-year expansion program aimed at boosting business and further expanding its customer base. The program will involve the construction of a third building at its current manufacturing plant in Biñan, Laguna which will add 180,000 square feet of space, and the acquisition of new equipment as well.

Cirtek harnesses more than 25 years of expertise in the assembly and testing segment of the semiconductor industry. From only three customers in 1984, the company, through subsidiaries, has significantly grown its customer base to 42 at present.

Despite the volatility in the semiconductor industry worldwide, the company has grown continuously with a compounded annual growth rate of 25 percent in volume produced over the past 10 years.