Phoenix Semiconductor sets P2.65-B IPO

MANILA, Philippines - Phoenix Semiconductor Philippines Corp., a unit of a South Korean semiconductor giant, is set to become the fourth company to debut in the local bourse this year.

In a memorandum circular, the Philippine Stock Exchange (PSE) said its board of directors has approved the application of Phoenix Semiconductor for the initial listing of up to 2.356 billion common shares in the main board.

Phoenix Semiconductor plans to sell a total 706.81 million common shares at a maximum price of P3.76 for a total amount of P2.65 billion.

Specifically, the company will offer 286.09 million new shares worth P1.07 billion while 286.09 billion existing shares valued at P1.07 billion will be offered to the public. There is also an oversubscription option of 134.63 million shares worth P506.2 million to cater to strong demand.

The timeline for the initial public offering (IPO) has yet to be finalized.

Net proceeds from the IPO will support the acquisition of machinery and production equipment, while also improving the company’s building and structure, Phoenix Semiconductor said.

The entry 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.

Phoenix Semiconductor is the Philippine unit of South Korea’s STS Semiconductor & Telecommunications Co. Ltd., which is taking advantage of the recovery in the global electronics industry.

The Clark-based company has relocated some of its facilities from China due to a more cost-competitive labor force in the Philippines.

It currently employs 2,000-3,000 Filipino workers providing 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.

Top Frontier Investment Holdings Inc., the majority shareholder of diversified conglomerate San Miguel Corp., listed by way of introduction in January. DoubleDragon Properties Corp. and Century Pacific Food Inc. conducted their IPOs in April and May, respectively.