After months of delay, with rumors that the company even deferred its planned Initial Public Offering (IPO) to avoid the Ghost Month in August, Phoenix Semiconductor Phil. Corp. (PSPC) is finally pushing through with its IPO on December 1.
PSPC plans to raise up to P1.22 billion from the said offering, proceeds of which will be primarily used for expansion. PSPC intends to extend its current manufacturing facility and construct a new production facility within its 15-hectare area property at the Clark Freeport Zone in Pampanga. The projects are meant to start bigger mass production of its products by the second half of 2015
PSPC will issue 162,380,000 primary and secondary shares each, with an oversubscription offer of up to 134,630,000 common shares at an offer price of PHP 3.76 per share.
Company Overview: Phoenix Semiconductor Phil. Corp.
PSPC is engaged in the construction, ownership and operation of a plant for the manufacture, assembly, test and warehousing of semiconductors, memory devices, and related products.
PSPC is a wholly-owned subsidiary of STS Semiconductor & Telecommunications Co. Ltd., a semiconductor company under the Bokwang Group of South Korea.
It is engaged in the manufacture, assembly, test and warehousing of semiconductor and memory devices and applications and related products. In particular, the company assembles and tests memory chips and devices for computers, laptops and servers, as well as micro SD cards for mobile phones.
Phoenix Semiconductor has a midterm contract with Samsung Electronics of South Korea which ensures PSPC’s production capacity is guaranteed per month, translating to average monthly sales of US$17.4 million.
Special Report on PSPC Initial Public Offering
Need help making a decision whether or not to subscribe to PSPC’s IPO shares?
Local stock resource PinoyInvestor has a Special Report, exclusively available to Premium members, that gives guidance about the PSPC offering.
Here’s an excerpt from the Special Report on the PSPC IPO:
With the assumption of global market recovery over the next couple of years, all product categories and regions are seen to grow positively but a bigger portion of the growth will continue to be driven by the memory market. Wireless and automotive are expected to grow faster than the total market, while consumer and computer segments are assumed to remain stagnant.
At an indicative price of PHP 3.76, PSPC will trade at 2014 Price-Earnings Ratio (PER) of 10.86x . Compared to the company’s regional peers, this price is considered …. We arrived at a fair value estimate and Target Price per share of …
If you want access to this informative special report, which can help you decide whether to buy the IPO shares of PSPC or not, head over to PinoyInvestor and sign up for a free account.