HannStar Board International Holdings Ltd (HBI, 瀚宇博德國際), a subsidiary of Taiwanese printed circuit board manufacturer HannStar Board Corp (瀚宇博德), made its debut on the Hong Kong Stock Exchange yesterday and saw shares increase 6.21 percent on their initial public offering (IPO) price.
Shares of HBI opened at HK$1.89 (US$0.24) and moved between HK$2.03 and HK$1.86 in the session. The stock closed at HK$1.88, up 2.82 percent from its offer price of HK$1.77, compared with a 0.03 percent decline in the key Hang Seng Index.
A total of 226.575 million HBI shares changed hands on their first day of trading, according to Hong Kong Stock Exchange statistics.
HBI started its sale of 325 million shares last month. The company offered 32.5 million shares to the public market at a floor price of HK$1.77 last month. The IPO drew a whopping 312-fold subscription and froze HK$18 billion of capital on the market.
The remaining 292.5 million shares were sold to institutional investors and foreign investors at between HK$1.37 and HK$1.77 apiece. In total, HBI raised around HK$575.3 million (US$73.64 million), the largest IPO made by a Taiwanese company in Hong Kong this year.
Currently, there are 44 Taiwanese companies including HBI listed in Hong Kong, according to Mega Capital (Asia) Co (兆豐資本). The securities house said it expected to see the figure rise to 55, with an estimated total market value of HK$312 billion next year.
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HBI's parent group HannStar Board Corp has a production base in China's Jiangsu Province and is expected to break ground for a new plant there later this month. HannStar Board is under the Walsin Lihwa Group (華新麗華集團), whose other subsidiaries include HannStar Display Corp (瀚宇彩晶), Taiwan's smallest flat-panel maker.
Claiming to be the world's largest supplier of printed circuit boards for notebook computers, HannStar Board Corp saw sales for the first eight months of the year increase 44.61 percent to NT$2.74 billion (US$82.8 million) from a year ago.
Analysts estimated that last month's sales would grow 5 percent from August to NT$1.25 billion with a total year estimate of NT$12 billion.
HannStar Board Corp's clients include the world's two largest contract makers of notebook computers, Quanta Computer Inc (廣達電腦) and Compal Electronics Inc (仁寶電腦), as well as Asustek Computer Inc (華碩電腦), Wistron Corp (緯創) and other major original equipment manufacturers.
Shares of HannStar Board Corp were up NT$0.35 to close at NT$29.35 on the Taiwan Stock Exchange on Thursday.
Stock markets and other financial markets were closed yesterday for the Mid-Autumn Festival. The holidays will extend to Tuesday when the nation celebrates Double Ten National Day, with trading resuming on Wednesday, Oct. 11.
additional reporting by Amber Chung
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