Philippines’ Cal-Comp delays $125 million IPO due to market conditions

September 20, 2018 - 9:19 AM
A view of the Philippine stock market. (Philstar/File photo)

MANILA — The Philippine unit of Taiwan’s New Kinpo Group said on Wednesday it postponed an initial public offering (IPO) valued at up to 6.77 billion pesos ($125.2 million), the latest firm to delay its debut on Southeast Asia’s worst performing bourse.

“We have decided to defer our IPO temporarily due to current market conditions and investor sentiment of the market,” Cal-Comp Technology (Philippines) Inc. said in a statement.

Cal-Comp, which produces electronic items such as external hard disk drives, televisions and smart home appliances, had planned to list on the Philippines‘ bourse later this year.

Cal-Comp planned to use the IPO proceeds to acquire equipment and expand its operations south of the capital Manila.

The Philippines exported $21.6 billion worth of electronics in the first seven months of this year.

Investor concerns about high inflation and worsening China-U.S. trade tensions have weighed on the Philippines‘ broader stock index. It has fallen 15 percent this year, the worst performer in Southeast Asia.

In June, Del Monte Philippines Inc. postponed what would have been the country’s biggest IPO since 2016.

The Philippine unit of AirAsia Bhd said this month its IPO might be pushed back to the middle of 2019. ($1 = 54.07 Philippine pesos) — Reporting by Neil Jerome Morales; Editing by Darren Schuettler