Innolux Display Corp (
Innolux, the flat-panel manufacturing arm of Hon Hai Group (鴻海集團), established three years ago, is planning to offer 2.1 billion common shares on the Taiwan Stock Exchange, the Financial Supervisory Commission said in a statement released on Wednesday.
At the same time, Innolux also planned to raise roughly NT$8 billion (US$246.46 million) by offering 200 million shares initially set at NT$40 per share for its existing shareholders in the third quarter of this year.
Innolux currently has NT$21.1 billion in capital. Hon Hai Group also owns the nation's biggest electronic component maker Hon Hai Precision Industry Co (
"The proceeds will be used to purchase equipment which will be used to expand capacity," Innolux said in its first prospectus for potential investors.
Innolux manufactures flat panels for mobile phones and other portable electronic goods at a 4.5 generation line and makes computer LCD panels at a fifth-generation line.
The company hopes to boost its monthly output to 35,000 glass substrates for the 4.5G line and 75,000 glass substrates for the 5G line.
Computer vendors including Dell Inc and Hewlett-Packard Co as well as major mobile phone brands Nokia Oyj and Motorola Inc are among Innolux's customers, according to the company's prospectus.
"To expand capacity overnight, Innolux may use part of the proceeds from the IPO to acquire local peers because the panel maker lags a long way behind its competitors in the construction of next-generation factories," said Roger Yu (游智超), who tracks the flat panel industry for Polaris Securities Co (寶來證券).
Innolux earned NT$406 million, or NT$0.21 per share on revenues of NT$51.4 billion last year according to the company's filing to the Taiwan Stock Exchange.
Innolux shares rose 0.48 percent to NT$46.35 yesterday.
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