Sat, Nov 15, 2003 - Page 11 News List

ProMOS plans to finance equipment with shares


ProMOS Technologies Inc (茂德科技), the nation's second-biggest maker of computer-memory chips, plans to raise US$300 million selling shares overseas in the first quarter to finance equipment purchases as semiconductor demand improves.

Shareholders today approved a proposal to sell 600 million shares overseas, worth US$248 million at yesterday's closing price.

Hsinchu-based ProMOS aims to raise US$300 million, president Chen Min-liang (陳民良) said after the meeting, implying the company expects to sell the shares at a 21 percent premium.

ProMOS last month said it expects to post a pretax profit this year after earlier forecasting a loss, because of increasing sales and lower costs.

The price of the benchmark memory chip has risen almost half from its February low as demand rebounds for personal computers, according to, a Taiwan-based online market-maker.

Shares of ProMOS fell NT$0.10, or 0.7 percent, to NT$14.05 in Taipei. They have climbed 46 percent this year, outpacing a 24 percent gain on the TAIEX.

ProMOS will use the money raised from the overseas share sale to buy equipment for its first 12-inch silicon wafer plant.

The company plans further share sales next year, vice president Albert Lin (林育中) said.

The overseas-traded shares of Taiwanes companies often trade at higher levels than in the domestic market because international investment in the country is restricted.

Still, ProMOS's UK- listed global depositary receipts last traded at the equivalent of NT$13.66, a discount to the company's domestic shares.

ProMOS said on Oct. 29 it expects to report full-year pretax profit of NT$361 million. It also raised its sales expectation for this year to NT$23.4 billion from N$22.3 billion.

The company, which in May forecast a full-year loss of NT$1.2 billion, said on Nov. 5 it expects a fourth-quarter pretax profit of NT$973 million.

ProMOS had profit of NT$864 million in the third quarter, ending two quarters of losses totaling NT$1.5 billion.

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