UTAC Files for IPO: What Investors Need to Know

UTAC IPOUTAC Holdings Ltd. submitted a filing to the Securities and Exchange Commission (SEC) on July 15, 2015, for its initial public offering (IPO). (Source: Securities and Exchange Commission, last accessed July 16, 2015.)

The revived offering comes as investor interest in the semiconductor industry is rising.  However, investors may have some questions about the UTAC IPO before it becomes available. The UTAC IPO date is expected to be in the third quarter.

Who is UTAC?

UTAC 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.

The company is headquartered in Singapore, with production facilities located in Singapore, Thailand, Taiwan, China, Indonesia, and Malaysia.

What is UTAC’s Business Model?

The company aims to continue to strengthen relationships and further grow their share of business with existing customers, seek new customer relationships within high-growth end-markets, capitalize on opportunities to grow through selective acquisitions as well as maintain discipline on capital expenditure and prudent cost management.

What is UTAC’s Revenue?

In 2014, sales rose to $860.3 million, an increase of 15% compared to sales of $748.4 million in 2013.

What is UTAC’s IPO Price?

No terms were given in the filling in regards to the IPO’s price, but it is expected to value up to $350 million. The underwriters for the offering are Merrill Lynch, Citigroup, and Credit Suisse.

What is UTAC’S Stock Symbol?

UTAC plans to list on the New York Stock Exchange (NYSE) under the ticker symbol “UTAC.”

How Will UTAC Use the Money?

The company intends to use the proceeds it receives from this IPO to pay for its indebtedness outstanding under its senior secured notes, as well as for general corporate purposes.