But underwriter BDO Capital and Investment Corp. said the company is still hoping to proceed with the share sale by the last quarter of 2011. BDO Capital president Eduardo Francisco said Cirtek has until November to hold the IPO sale before it needs to update the application.
“We are still hoping to list in the last quarter. But if markets remain bad, then the client may consider postponing to next year,” Francisco said last week, adding that they continue to hold discussions with investors.
Cirtek is the second company this year to file for public listing after contractor Megawide Construction Corp. completed its initial share sale in February.
Cirtek plans to sell up to 61.82 million common shares at P10.68 each, representing about 34 percent of the expanded capital, its initial prospectus showed.
The 26-year-old company, led by businessman Jerry Liu, is an independent solutions provider for subcontract manufacturing of semiconductor devices. It provides “complete turnkey solutions” that include package design and development, wafer probing, wafer back grinding, assembly and packaging, final testing of semiconductor devices and delivery to customers.
The shares will be sold by Camerton Inc., the corporate vehicle led by Liu and members of his family, which owns 99.99 percent of Cirtek’s capital stock, according to the prospectus.
Proceeds from the IPO will fund a three-year expansion program including the construction of a third building within its Biñan, Laguna manufacturing complex. This will add another 16,700 square meters of manufacturing space.
Cirtek said year-on-year net income jumped almost four times to $3.6 million in 2010, after the electronics sector recovered from the slowdown in 2009. Sales last year increased almost 44 percent to $34.37 million.
The company said its 2011 first quarter profits and sales reached $713,000 and $8.61 million, respectively.
At least two other companies set to hold IPOs this year have downsized their offerings.
Supermarket chain Puregold Price Club Inc., which commenced the domestic portion of its initial share sale last week, priced its shares at P12.50 each, at the bottom of its indicative range, to raise P7.5 billion, excluding overallotments.
SMC Global Power Holdings Corp. also cut the number of shares to be sold in its IPO that could raise up to P27.34 billion, or 23-percent less than previously announced.
