Cirtek up sharply in market debut
MANILA - Semiconductor manufacturer Cirtek Holdings Philippines Corp rose sharply at its stock market debut on Friday after a $7 million initial public offering (IPO), only the third such offering in the country this year as volatility swept financial markets.
The stock jumped to as high as P8.20 in early trade from its offer price of P7 per share. It was up 12% as of 0240 GMT.
Cirtek sold 42.16 million new common shares to domestic investors, representing 26% of its issued and outstanding capital stock after the offer.
It intends to use the IPO proceeds of P295.1 million ($7 million) for acquisition of new machineries and equipment and for general working capital requirements.
BDO Capital & Investment Corp, a unit of BDO Unibank Inc, was issue manager and lead underwriter.
Cirtek's IPO followed grocer Puregold Price Club's $170 million share sale in September and the $52 million public offer of Megawide Construction Corp in February.
Food-to-energy conglomerate San Miguel Corp's power unit has deferred its planned $850 million IPO originally scheduled to be launched before the end of this year, citing unfavourable market conditions.
The IPO of SMC Global Power Holdings Corp, the country's largest power producer, would have been the country's largest.