Thu, Jun 15, 2006 - Page 12 News List

ProMOS delays overseas share issuance

By Lisa Wang  /  STAFF REPORTER

ProMOS Technologies Inc (茂德科技), Taiwan's third-largest maker of computer memory chips, said yesterday it would reschedule the issuance of global depositary receipts scheduled for today to later this year, citing poor capital market conditions.

The chipmaker said that the decision had been made because of the disappointing price set yesterday for the offering of a maximum of 1 billion common shares to overseas investors.

ProMOS planned to use the proceeds to build a new 12-inch factory in central Taiwan and to improve its financial status.

ProMOS' decision to postpone its overseas share sale came on the same day as Hon Hai Precision Industry Co (鴻海精密), the nation's largest electronics company, decided during an annual shareholders' meeting at Tucheng (土城), Taipei County, to sell 300 million shares overseas to fund expansion.

The details of the overseas share issuance would be determined by Hon Hai chairman Terry Gou (郭台銘) at a later date, the company said in a statement.

The nation's two largest makers of memory chips said in February that they planned to issue shares overseas to fund new plants.

Powerchip Semiconductor Corp (力晶半導體) also planned to sell as much as US$200 million in convertible bonds and a maximum of 300 million new shares overseas, while Nanya Technology Corp (南亞科技) hoped to raise NT$10 billion.

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