Korean semicon giant to raise P2.15B via IPO

MANILA, Philippines - Phoenix Semiconductor Philippines Corp., a unit of a South Korean semiconductor giant, is taking advantage of the recovery in global electronics industry to raise P2.15 billion from an initial public offering (IPO).

The debut of Phoenix Semiconductor in the local bourse marks the latest IPO of a semiconductor company since Laguna-based Cirtek Holdings Philippines Corp. listed in 2011.

“The Korean play is unique. This is a testament to the Philippines as an investment destination,” said Eduardo V. Francisco, president of underwriter BDO Capital & Investment Corp.

The Philippine unit of South Korea’s STS Semiconductor & Telecommunications Co. Ltd. will hold a roadshow for qualified institutional buyers.

The Clark-based Phoenix Semiconductor is seeking the Securities and Exchange Commission’s approval to sell 572.186 million shares at a maximum price of P3.76 apiece, for a total P2.15 billion.

Francisco said Phoenix Semiconductor is a good company despite the challenges in the sector. It has relocated some of its facilities from China given the good labor force in the Philippines, he said.

So far, Phoenix employs 2,000-3,000 Filipino workers to provide various customers a wide range of products like SD cards and memory modules for personal computer and notebooks.

“Phoenix Semiconductor plans to set up a complete organizational structure (assembly, test and module), quality control system, and a leading information technology system...to meet customer’s requirements,” the company said in its website.

The last time a semiconductor firm did an IPO in the local stock exchange was Cirtek Holdigs in November 2011. Cirtek is an independent complete solution provider for subcontract manufacturing of semiconductor devices with 29 years of experience in the assembly and testing segment.

DoubleDragon Properties Corp. was the first firm to conduct an IPO this year, while Top Frontier Investment Holdings Inc., the majority shareholder of diversified conglomerate San Miguel Corp., listed by way of introduction in January.

Century Pacific Food Inc., the country’s largest canned goods producer, will debut in the local bourse next month.