Sat, Jan 27, 2007 - Page 12 News List

Shares in Young Optics surge on first trading day

PROMISING STARTThe company was the first to debut on the Taiwan Stock Exchange this year, and its listing was marked with a drumroll and confetti as part of a new bourse policy


Young Optics Inc (揚明光學), an integrated optical product designer, yesterday saw its share price surge by 78 percent on its debut day on the local bourse.

Shares of Young Optics, the first company to be listed on the Taiwan Stock Exchange this year, closed at NT$80 (US$2.4), which is higher than its initial public offering (IPO) price of NT$45.

A company is not subject to the 7 percent ceiling on share-price fluctuations for its first five trading days.

The Hsinchu-based Young Optics, which was spun off from Coretronic Corp (中強光電) in 2002, is one of the nation's pioneering manufacturers of optical engines and related components used in projectors.

The company, first listed on the Emerging Stock Market (興櫃市場) in November 2005, posted NT$6.17 billion in sales last year, up 47 percent from NT$4.2 billion a year ago, official results show.

"Young Optics is competitive in the niche segment of optical engines. Its shipments are expected to surpass average industry growth this year," said Tseng Hsin-kai (曾信凱), an analyst with SinoPac Securities Corp (建華證券).

He said that the company would start churning out shipments for a new client in the third quarter, which could help to boost its shipments by 17 percent this year.

Young Optics' share debut was celebrated with a drumroll and confetti in a ceremony at the stock exchange yesterday.

"This IPO ceremony marks our efforts to bring the exchange in line with international peers," Taiwan Stock Exchange Gordon Chen (陳樹) said, adding that stock exchanges in Shanghai, New York, Tokyo and Hong Kong all conducted IPO ceremonies to welcome new members.

The Taiwan Stock Exchange said last month that it was aiming to lure 25 new firms to launch IPOs this year. It had a total of 688 listed firms at the end of last year after adding 10 new firms but delisting 13 as a result of mergers and acquisitions.

In 2005 there were 691 listed companies, which was six companies fewer than in 2004.

The local stock exchange is facing stiff competition from its Hong Kong counterpart as local businesses increasingly choose IPOs there to bypass the government's investment regulations on China, Taiwan's largest investment destination.

The benchmark TAIEX index gained about 19 percent last year, while Hong Kong's Hang Seng Index rose around 34 percent over the same period.

The Cabinet in September last year announced a target of attracting 250 companies to the local stock markets within the next three years.

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