Technology

UTAC Prepares for IPO in the US

UTAC Holdings has filed an F-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing terms were given in the filing, but the offering is valued up to $350 million. The company has not yet decided which U.S. exchange it will list on, but it intends to use the symbol UTAC.

The underwriters for the offering are Merrill Lynch, Citigroup and Credit Suisse.

This is a leading independent provider of assembly and test services for a broad range of semiconductor chips (also known as integrated circuits) with diversified end-uses, including in communications devices (such as smartphones, Bluetooth and Wi-Fi), consumer devices, computing devices, automotive applications and industrial and medical applications. UTAC believes that it is a leader in the analog product category and in the fast-growing quad flat no-lead packaging segment (which extends across the analog and mixed-signal product categories), and that this leadership positions it well to capitalize on the demand for new analog integrated circuits across end-markets, which is expected to be driven by the growth of the Internet of Things (IoT).

UTAC offers its customers a full range of semiconductor assembly and test services in the following key product categories: analog, mixed-signal and logic and memory. The company also integrates service offerings to provide full turnkey solutions, including wafer probing, wafer processing, assembly, testing and the direct shipment of semiconductors to users designated by our customers. In addition, it also provides test development services.

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In the filing, UTAC described its recent finances as follows:

In the six months ended June 30, 2015, we had sales of $435.8 million, an increase of 19.7% compared to sales of $364.1 million in the six months ended June 30, 2014. Excluding the liquidated damages of $12.2 million from Panasonic pursuant to the contract manufacture agreement that we recognized as revenue for the six months ended June 30, 2015:

  • Our sales from assembly and test services represent 64.6% and 35.4% of our sales, respectively, for the six months ended June 30, 2015; and
  • Our analog, mixed-signal and logic, memory and other product categories accounted for 35.5%, 44.6%, 9.1% and 10.8% of our sales, respectively, for the six months ended June 30, 2015.

The company intends to use the net proceeds from this offering to pay down indebtedness and for working capital and general corporate purposes.

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