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Cirtek IPO to go on as schedule


Cirtek IPO to go on as schedule

 

Cirtek Electronics Corp., a local semiconductor maker based in Laguna province, remains firm on holding a $10-million initial public offering (IPO) this year, despite volatile conditions that have prompted other companies to rethink plans to tap the equity markets.

“We are targeting July for the IPO,” said Danny Lizares, head of the Philippine office of Aureos South-East Asia Fund, a strategic investor of Cirtek, in an e-mailed response to the BusinessMirror.

The 27-year-old electronics manufacturer had originally planned to hold its initial share sale in the first half of 2011, and has tapped BDO Capital and Investment Corp. as underwriter.

“We are nearly complete in our submissions with the Securities and Exchange Commission and Philippine Stock Exchange. We are still looking at a target size of $10 million,” Lizares said, although he was unable to immediately provide added details on the proposed IPO.

With the recent listing of Megawide Construction Corp. in February, Cirtek remains on track to become the second company to go public this year. It also joins the short list of publicly traded electronics makers, which include Ayala-led Integrated Micro-Electronics Inc. and Ionics Inc.

Lizares said the outlook for the electronics sector remained “upbeat,” indicating that the company remained unfazed despite early signs of a slowdown.

There are also supply concerns arising from the recent calamities that struck Japan, according to earlier reports. The Semiconductor and Electronics Industries of the Philippines Inc., however, still sees the industry growing 8 percent to 10 percent in 2011.

“Our first quarter results this year are better than those for the same period last year. So our forecast of around $4.5 million net income this year is achievable,” Lizares said.

Aureos South East Asia owns “little” under a third of Cirtek after it entered the electronics maker four years ago. Cirtek is currently led by Jerry Liu and his family.

Cirtek provides complete turnkey solutions that include services from wafer probe, wafer back grinding, assembly and packaging and final testing of semiconductor devices up to drop shipments to clients, the company said on its web site.

Its manufacturing facility in the Laguna Technopark in Biñan, spans over 13,900 square meters.

 

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