Taisalt has high hopes for share sale

The Taiwan Salt Co (Taisalt, 台鹽), one of the most profitable state-run companies, announced yesterday that it plans to start releasing 60 percent of its stock by the end of this month and aims to be listed on the TAIEX on Nov. 18.

"I'm very optimistic about the upcoming share sale," said Taisalt chairman Cheng Pao-ching (鄭寶清) at a press conference yesterday.

"Taisalt will be a competitive company in the market," he said.

Of the 60 percent stake to be offered to be public, 10 percent will be reserved for Taisalt employees and 20 percent, or 50 million shares, will sold through an auction held between Sept. 25 and Sept. 30 at a floor price of NT$18 per share, said Charles Shen (沈文成), executive vice president of Taiwan Securities (台証證券), the organizer of the sale.

Shen said Taiwan Securities will release detailed auction information to interested investors today. The company has tentatively restricted each individual investor or corporate to purchase more than 3 percent of the company's shares, he added.

Shen is optimistic about the sale, saying that the net value of Taisalt's stake is estimated at NT$24.8 per share, which is higher than the offered price.

One market watcher agreed, saying Taisalt will be a blue chip in the petrochemical sector on the TAIEX.

"Taisalt is a model company among state-run companies due to its successful business transformation," said Stanley Yeh (葉德霖), an analyst at Yuanta Core Pacific Securities Corp (元大京華證券).

"The company's rising sales figures are sure to attract potential investors," he said.

Taisalt, with paid-in capital of NT$2.5 billion, reported NT$2.08 billion in sales for the first eight months of the year, up 9.76 percent from a year ago.

The company expects to increase its annual sales by more than 10 percent this year.

The salt business constitutes approximately 67 percent of Taisalt's business. But the company has been expanding its business horizon by launching a series of skincare products, which generate NT$300 million in annual revenues.

Taisalt is also seeking to franchise its retail stores to improve its bottom line. The company hopes to increase its number of retail outlets from 50 to 100 by the end of the year, Cheng said.

Earlier this month, Taisalt opened its first department store outlet in Taipei's Breeze Center (微風廣場). It is planning to open more store outlets in Shin Kong Mitsukoshi Department Stores (新光三越百貨), Takashimaya Department Stores (大葉高島屋) and the Windance complex (風城購物中心) in Hsinchu in the near future, he said.