PSPC to IPO in September to avoid Ghost Month?

Those waiting for a new Initial Public Offering (IPO) are in for a disappointment now that the planned IPO of a semiconductor company, originally slated this June, will be postponed to a later date.

IPO Details

ipo-initial-public-offeringPhoenix Semiconductor Philippines Corp. (PSPC), makers of semiconductor and memory devices which count tech giant Samsung Electronics as one of its primary customers, was set to issue shares to the public for the first time this month, but the IPO was pushed back after the Securities and Exchange Commission (SEC) gave approval to the transaction only this week.

PSPC’s offer period was originally scheduled from June 16 to June 20. Its shares were supposed to start trading in the Philippine Stock Exchange tomorrow, June 27. (See Semiconductor firm PSPC plans IPO in June)

The company expects to raise up to P2.7 billion from the transaction. It will issue up to 706.82 million shares at a maximum price of P3.76 per share.

The IPO shares consist of 286.09 million primary and 286.09 million secondary shares held by majority shareholder STS Semiconductor & Telecommunications Co. Ltd. There is an overallotment of 134.63 million shares in case of strong demand.

Expansion Plans

PSPC’s IPO prospectus shows that majority of the proceeds will be used to “enhance the production facility through the acquisition of machines for existing production lines and building improvement.”

The company also plans to construct a new production facility within its 15-hectare area property at the Clark Freeport Zone in Pampanga.

A news article from Interaksyon reported that the IPO issue manager and underwriter, BDO Capital & Investment Corp., is currently requesting for an extension of the IPO timeline since it might “hit ghost month and our investors don’t generally like to invest that time,” according to BDO Capital President Ed Francisco.

August Ghost Month

The Ghost Month is a Chinese belief that ghosts and spirits of the dead roam freely in the world of the living and that during this month, people should avoid making important decisions because it could bring bad luck.

The 7th month in the lunar calendar is considered the Ghost Month, which typically falls in the month of August in the Gregorian calendar.

The peak of the Ghost Month is the Ghost Day or the Ghost Festival, which is the 15th day of the seventh month. This year, the Ghost Festival falls on August 10, 2014.

Citing investors’ lackluster activity during the August Ghost Month, underwriter BDO Capital said they are requesting that the PSPC IPO be deferred to September.

4th Company to go public

Phoenix Semiconductor Philippines Corp. (PSPC) is a company engaged in the manufacture, assembly, test and warehousing of memory chips and devices for computers, laptops and servers, as well as micro SD cards for mobile phones.

It started commercial operations in the Philippines on February 2011, and currently has a contract to supply parts to Samsung Electronics, guaranteeing an average monthly sales of US$17.4 million.

In its fiscal year ending February 2014, PSPC booked Net Income amounting to $3.03 million, reversing a Net Loss of $489,408 incurred in 2013.

If the IPO pushes through, PSPC will be the fourth company to go public in the PSE in 2014. Earlier this year, property development firm DoubleDragon Properties Corp. (DD) and tuna maker Century Pacific Foods Inc. (CNPF) both conducted Initial Public Offerings.

Top Frontier Holdings Corp. (TFHI) also went public in January but the route of listing by way of introduction.

Also read our other awesome, educational posts!

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more
blank

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

3 thoughts on “PSPC to IPO in September to avoid Ghost Month?”

  1. June 27 was already listed in their disclosure. Why did they reschedule it one day before, just because of superstition? Didn’ they know it before writing their disclosure?

    Reply
  2. Is the company tantalizing stock traders? Is PSPC disclosing then rescheduling their listing date to increase the demand for for their stock?

    Reply

Leave a Comment