UTAC   

UTAC

Previously listed in the SGX.

If I am not wrong, the previous CEO is

one of Mr. Singh.

williamyeo      ( Date: 15-Jun-2011 20:53) Posted: June 15, 2011, 6.09 pm (Singapore time) Utac to relist in US$406 mln S'pore IPO: sources Utac is seeking a listing on the Singapore exchange in the third quarter, and has hired Bank of America Merrill Lynch, JP Morgan, UBS, and United Overseas Bank as the joint book runners, said one of the sources close to the deal. 'It is still in the pre-marketing stages, nothing has been firmed up but it is targeting to list in the third quarter,' another source told Reuters. Utac was taken over by Global A& T Electronics Ltd, a vehicle owned by Affinity and TPG, in a US$1.4 billion leveraged buyout just around the time when the credit crisis began. TPG and Affinity will not sell any of their stakes in Utac, but their stakes will be diluted after the share offering, a source said. New shares will be offered in the IPO, other sources said. Utac plans to use the funds raised to retire debt and undertake potential acquisitions in the future. Banking sources have previously said the debt is around US$1 billion. The company, which tests semiconductor chips used in tablet PCs and smartphones, could benefit from booming demand for the consumer electronic devices made popular by Apple's iPhone and iPad. Singapore-based Utac employees over 13,000 people, and has operations in the city-state, China, Taiwan and Thailand. -- REUTERS   SINGAPORE - Microchip tester United Test Assembly Centre (Utac), which was taken over by buyout firms TPG and Affinity Equity Partners in 2007, is seeking to relist in Singapore in an IPO worth about S$500 million (US$406.3 million), two sources said on Wednesday.

 

June 15, 2011, 6.09 pm (Singapore time)

Utac to relist in US$406 mln S'pore IPO: sources Utac is seeking a listing on the Singapore exchange in the third quarter, and has hired Bank of America Merrill Lynch, JP Morgan, UBS, and United Overseas Bank as the joint book runners, said one of the sources close to the deal. 'It is still in the pre-marketing stages, nothing has been firmed up but it is targeting to list in the third quarter,' another source told Reuters. Utac was taken over by Global A& T Electronics Ltd, a vehicle owned by Affinity and TPG, in a US$1.4 billion leveraged buyout just around the time when the credit crisis began. TPG and Affinity will not sell any of their stakes in Utac, but their stakes will be diluted after the share offering, a source said. New shares will be offered in the IPO, other sources said. Utac plans to use the funds raised to retire debt and undertake potential acquisitions in the future. Banking sources have previously said the debt is around US$1 billion. The company, which tests semiconductor chips used in tablet PCs and smartphones, could benefit from booming demand for the consumer electronic devices made popular by Apple's iPhone and iPad. Singapore-based Utac employees over 13,000 people, and has operations in the city-state, China, Taiwan and Thailand. -- REUTERS   SINGAPORE - Microchip tester United Test Assembly Centre (Utac), which was taken over by buyout firms TPG and Affinity Equity Partners in 2007, is seeking to relist in Singapore in an IPO worth about S$500 million (US$406.3 million), two sources said on Wednesday.

 

Extracted from my blog http://kelongstocks.blogspot.com Please see my blog for full details [b]Fundamental Analysis[/b] UTAC is a much larger player compared to Global Testing, hence it deserves to trade at high P/E multiples and Price/Book ratios even though Global Testing has the highest profit margins. UTAC is also far superior to STATS ChipPac in terms of profit margins and trades at lower P/Es. STATS ChipPac's current P/E is already pricing in return to growth and profitability over the next couple of years even though visibility is poor. UTAC has guided for revenue growth of 40% for 2006 but with the semiconductor industry at its strongest ever seen in years (Feb has seen strong sales from TSMC and UMC even though this is traditionally a weak month) I think this is conservative and I have priced in 55% growth in revenues and profits. Pegging UTAC at 16x forward P/E (higher valuations given up-cycle in semiconductor industry) yields fair value of $1.09, in line with technical target if 98.5 cents resistance is taken out.

 

Extracted from my blog http://kelongstocks.blogspot.com Fundamental Analysis will be available before 9am tomorrow morning. Please view my blog for full details. [B]Technical Analysis[/B] UTAC gapped up on 02 Mar 06 and hit an intra-day high of 98.5 cents after it was included in the STI Index. Unfortunately, it could not close above the prior resistance of 98 cents and settled at 95.5 cents. The gap between 92.5 cents and 95 cents has now been completely filled and chart shows UTAC testing the support of 88.5 cents successfully before rebounding over past 2 days. Support: $0.885/0.889 (recent support), $0.87 (EMA 50), $0.865 (prior high in mid Jan 06, also support during 25 tto 26 Jan 06, base of hammer) Resistances: $0.95 (gap resistance), $0.98/$0.985 (intraday recent highs this year) Indicators: Still bearish but showing signs of reversal. RSI turned up today, MACD gradually moving back towards 0 and Stochastics starting to turn up in oversold zone. Look for UTAC to test the gap resistance at 95 cents and move on to retest the $0.98/$0.985 resistance levels again especially given bullish remarks over semiconductor sector today (strong monthly sales from key Taiwanese foundry customers TSMC, UMC in February despite month being seasonally weaker and Citigroup reiterating buy calls for TSMC and UTAC). Technical target if 98/98.5 cents resistance is broken is $1.08/$1.09.