Philippine Electronics Maker Cal-Comp Defers $210m IPO Again

Consumer tech firm Cal-Comp Technology (Philippines) has decided for the second time to withdraw its planned $210-million initial public offering (IPO) on the local exchange.

“The company believes that the initial valuations indicated by the market do not fully reflect its strong performance and growth prospects,” Cal-Comp said in a disclosure to the Philippine Stock Exchange (PSE).

“Volatile market conditions” were another reason cited by the company for its decision to defer its offering and reevaluate its listing plans.

Cal-Comp said its decision not to pursue the offering at this time was based on “careful consideration,” including extensive discussions with the underwriters.

“In the meantime, the company will continue to focus on the growth of its business in the Philippines and ensure that its targets continue to be met,” it added.

The offering, which was scheduled to run from November 11 to 15 after price setting on Thursday, would have seen Cal-Comp selling up to 371.42 million shares to the public at a maximum price of 25 pesos ($0.49) each, with an overallotment option of up to 55.7 million shares.

The planned IPO was approved by the PSE last month.

In September last year, Cal-Comp, a member of Taiwanese technology conglomerate New Kinpo Group (NKG), announced that it had decided to delay its IPO due to market conditions.

Cal-Comp Tech, which is engaged in the manufacturing of external hard disk drives and televisions, currently has over 6,000 employees at its manufacturing facilities located at the Lima Technology Center in Lipa City and at the First Philippine Industrial Park in Sto. Tomas, Batangas.

The consumer tech company’s move comes less than a month after Metro Pacific Hospitals deferred a proposed $1.6-billion IPO after its parent firm, Metro Pacific Investment Corp, sold 42.5 per cent stake in the hospital to a consortium led by private equity firm KKR & Co.

The stake sale raised $684.5 million and saw Singapore sovereign wealth fund GIC restructuring its holding in the hospital unit to join the KKR-led consortium.

The proposed Metro Pacific Hospitals IPO would have been the largest listing in the Philippines. The record continues to be held by Philippine conglomerate San Miguel Corporation, which raised $634 million in a share sale last year.