BULLISH. Phoenix Semiconductor Phil. Corp.’s Kyuho Han and Dongjoo Kim announce their firm’s plans to go IPO and expand its Clark facilities. Photo by Bong Lacson
CLARK FREEPORT – Phoenix Semiconductor Phil. Corp (PSPC), this freeport’s top exporting company, is proceeding with its planned initial public offering (IPO) on Dec. 1. This, in pursuit of an additional $170 million to open a new facility geared towards the production of semiconductors for high-end mobile phones.
The PPSC is a wholly owned subsidiary of its parent company STS Semiconductors, a spin-off of Samsung Electronics Co. Ltd. It based in Clark in 2011, and has since “undergone transformations and sought technological development through aggressive management to grow as a leading semiconductor company.”
“PSPC has consistently maintained profitability, with a combined assets valued at S189.19 million as of Dec. 31, 2013,” said a press statement of the company. A report issued earlier by the Trade Facilitation Department of the Clark Development Corp.’s showed PSPC topping the freeport’s export volume with $229 million or 57 percent of the total exports for the first semester of 2014.
And PSPC continues to be bullish on the potential for growth of the Philippine market, hence its expansion, according to PSPC head of finance and director Kyuho Han. “The new facility would double our production. We will be hiring additional 1,000 workers,” said Han, adding PSPC currently employs 1,500 workers in both administrative and technical fields.
Han said the construction of the new factory to cover three hectares at the company site near the former expo site would start before the end of the year.
Share at P3.15
Dongjoo Kim, PSPC vice president and chief finance officer, said the company would start selling shares to the public at P3.15 as the initial offering price. He projected the target shares to raise about P1.22 billion. “Earned funds would be used for the PSPC expansion project,” he said.
Last Tursday, BDO Capital and Investment president Eduardo Francisco led an investment forum in Clark and discussed the initial public offering.
Unaffected
Engaged by Samsung as a main supplier for memory semiconductors, PSPC has been asked of the effects to its operations of the reported slump in sales of Samsung smart phones. “It is unfortunate that most people only think of Samsung as a producer of mobile phones, Kim lamented, even as he clarified: “Samsung makes all kinds of electronic devices and while Samsung may experience slowdown in one particular segment, there are other electronic segments that all need semiconductor chips.”
Han added: “While Samsung may have been down in its mobile phone sales, the entire segment as a whole grew. We see the potential to serve other players in the market, not just Samsung.” Going IPO and building a new facility are the initial steps toward that direction, Han said.
– with reports from PSPC-PR
