Ayala’s IMI defers IPO for one year

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MANILA, Philippines - Integrated Micro-Electronics Inc. (IMI) of the Ayala conglomerate has secured a fresh one-year leeway to postpone its public share sale.

While waiting for the right market timing, IMI will pursue various expansion programs to take advantage of the growth in the global electronics industry and encourage more investors, its top executive said.

“The Securities and Exchange Commission has a provision (on the delayed share sale) you have to have some reason as to why you’re asking for an extension,” IMI president and CEO Arthur Tan said.

Tan said the company is currently undervalued and the sale of shares will be unfair to existing shareholders.

The Ayala-led firm listed by way of introduction in 2010, allowing it to postpone a public share sale. However, the company was penalized for failing to sell shares beyond the leeway.

IMI’s market capitalization of around $116 million is significantly below the enterprise value of at least $300 million given the company’s product lines and capacity, Tan said.

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IMI will again gauge the market condition next year even as the global market improves, Tan said.

“It looks like the trajectory of the global market is moving where we want to be. The company is generating both revenue and net profitability and it is in right direction,” Tan said.

IMI, a provider of electronics manufacturing services (EMS) and power semiconductor assembly and tests services, wants to take advantage of the $283.9 billion market for original equipment manufacturers and EMS.

It allotted $27 million for its capital spending this year that includes the installation of a low-cost robotics and automated assembly line in several facilities where skilled labor is not too strong.

So far, three of the company’s 15 facilities have robotics assembly line.

Utilization rate of its factories averaged 70 percent, which could improve to 80 percent late this year, Tan said. IMI has factories in the Philippines, Mexico, Bulgaria, Germany, China, Japan, and France.

IMI is getting more heavy on automotive, industrial, medical and communications. It expects double-digit income and revenue growth this year.

IMI is on track to becoming a billion-dollar company in terms of revenues in 2016 by serving more energy, mobility, power, healthcare, industrial and security firms. It is so far the 20th largest provider of EMS in the world.