UTAC Files for IPO

By Chris Lange Published Jul 15, 1:20PM EDT

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UTAC Holdings Ltd. has filed an F-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $350 million. The company plans to list on the New York Stock Exchange under the ticker UTAC.

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

The company is an independent provider of assembly and test services for a broad range of semiconductor chips with diversified end-uses, including in communications devices, consumer devices, computing devices, automotive applications and industrial and medical applications. UTAC believes its diversity across end-markets will position it well to benefit from the Internet of Things.

Customers of UTAC are primarily fabless companies, integrated device manufacturers and wafer foundries. In 2014, the top 10 customers by sales were Panasonic, Broadcom, Texas Instruments, Maxim Integrated, Taiwan Semiconductor Manufacturing, SanDisk, Microchip Technology, STMicroelectronics, Formosa Advanced Technologies and Power Integrations.

The company is headquartered in Singapore, with production facilities located in Singapore, Thailand, Taiwan, China, Indonesia and Malaysia. At the end of December 2014, UTAC’s office and manufacturing space at its facilities covered an area of approximately 275,770 square meters, and it operated 3,024 wire bonders and 1,673 testers. In addition to the assembly and test facilities, UTAC has a global sales network focused on five regions: United States, Japan, Taiwan and China, the rest of Asia, and Europe.

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UTAC described its finances in the filing as:

In 2014, we had sales of $860.3 million, an increase of 15.0% compared to sales of $748.4 million in 2013. In 2014, 66.1% of our sales were from assembly services and 33.9% of our sales were from test services. In 2014, our analog, mixed-signal and logic, memory and other product categories accounted for 35.7%, 45.5%, 11.1% and 7.7% of our sales, respectively.

The company intends to use the net proceeds it receives from this offering mainly to retire certain of its indebtedness outstanding under its senior secured notes, as well as for general corporate purposes.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.