AACSHL, which owns 91.5 percent of FHC, plans to offer to the public a minimum of 60 million FHC shares priced between P3.80 and P4.20 per share. The offer price is equivalent to a price-earnings (P/E) multiple of about 10 times its forecast 2005 net income of P250 million.
AACSHL disclosed that the secondary offer is intended to comply with the PSE’s public ownership requirement as well as to increase the company’s public float, thereby improving the stock’s liquidity.
The shares to be offered represent 10 percent of FHC’s total issued and outstanding capital stock.
The offer period will run from Nov. 8 to 10. In line with this, FHC has sought the suspension of trading of its shares from Nov. 8 to 17.
Analysts said the proposed transaction will allow investors to be part of the first and only "pure play" in the country’s growing call center industry.
FHC, previously known as tile and ceramic maker Fil-Hispano Ceramics Inc., completely divested from the tile manufacturing business and shut down its facilities in 1999.
With the acquisition of call center firm Advanced Contact Solutions (ACS) in early 2004, FHC is now focused on the operations and expansion of its call center subsidiary.
From a net loss of P17.97 million in 2002, FHC swung back to profitability in 2003 with a net income of P4.81 million. For the first half this year, FHC’s net income increased further to P49.91 million.
ACS has been in the call center business since 1997 and has grown from 250 seats to nearly 2,000 installed seats operating in three locations - Cabuyao, Laguna; Citibank Tower; and Allied Bank Center in Makati.
ACS, which is among the top 10 call centers in the Philippines, provides inbound customer care and sales solutions to US-based clients in telecommunications, financial services and retail.
US-based companies contribute 80 percent to ACS’s total revenues. Among its clients are a leading US telecommunications company, a top US investment company and a leading TV shopping network.
The call center industry is the fastest growing sector in the country today, expanding from less than 1,000 seats in 2000 to an estimated 40,000 seats by the end of this year. A number of US call centers have started the migration from US to Asian countries with the Philippines and India as the main recipients of the outsourced businesses.
Some of the top US call centers which moved their operations here are Convergys, Sykes, Sitel and PeopleSupport.
Call centers provide a way for companies to service the requirements of its customers. These requirements may be addressed through various channels such as phone calls, e-mails, web chat sessions and faxes.
Call centers also provide business process outsourcing services for companies who wish to shift their backroom and support operations to a high quality, lower cost provider.