A SEMICONDUCTOR manufacturer has formally signaled its intent to list at the local bourse in what could be the second initial public offering (IPO) this year, a filing with the corporate regulator showed.

In its filing with the Securities and Exchange Commission, dated last June 21, Laguna-based semiconductor Cirtek Holdings Philippines Corp. said it hopes to raise about P660 million from the offer.

The company plans to sell up to 61.8 million shares — equivalent to 34% of its 181.82 million issued and outstanding capital stock after completion of the offer — at a maximum price of P10.68 apiece to finance working capital, recent acquisitions and the purchase of new machinery and equipment as part of its three-year expansion program.

“The net proceeds that will be generated from the offer will be used primarily for the acquisition of new machineries and equipment, and for general working capital requirements,” Cirtek said in a statement yesterday.

It said expansion work slated to start this quarter will include construction of a third building that will add around 55,000 square meters to its 13,900 sq.m. manufacturing complex in Biñan, Laguna. From this year up to the next, Cirtek plans to spend much as P260 million of funds to be raised from the offer to buy assembly equipment, P185 million as working capital, P150 million for building improvement and expansion, and P30 million for other facility improvements.

Ten percent of the shares to be offered will be made available to small investors, defined as those whose investment will not exceed P25,000.

Cirtek has tapped Banco de Oro Unibank’s subsidiary, BDO Capital and Investment Corp., as underwriter for the offer.

While earlier news reports had indicated Cirtek’s intention to list in the months leading to July, the filing itself did not indicate a definite period for the offer.

Should it finally proceed, Cirtek’s IPO will be the second such offer this year after SM contractor Megawide Construction Corp.’s listing last February.

In its filing, Cirtek said it has been engaged for more than 25 years in semiconductor assembly, test and packaging services.

Its products are used as components in equipment like smart phones and battery chargers, as well in automotive sensor and industrial applications. — FJGDF