Shares of Etron Technology Inc (鈺創科技) plummeted by the 7 percent daily limit yesterday after prosecutors raided the integrated circuit design house on Wednesday.
Etron shares closed at NT$37.25 (US$1.13) on the GRETAI Securities Market, compared with a 0.63-percent increase in the over-the-counter market.
Hsinchu prosecutors and investigators searched Etron's Hsinchu headquarters in connection with an investigation into alleged insider trading. Three officials, including a financial manager, were questioned.
The three were sent to the Taipei District Prosecutors' Office for more questioning on Wednesday night.
The company posted a deficit of NT$117.21 million, or negative NT$0.37 per share, for the second quarter last year.
A Financial Supervisory Commission inspection report said that before that quarterly report was announced last year, a large number of Etron's shares were sold. The seller reportedly made more than NT$10 million.
Prosecutors also suspect the price of Etron's shares was manipulated last year because it jumped from NT$20 to NT$50.
Prosecutors said Etron chairman and president Nicky Lu (
Lu was at Etron's headquarters during the search. However, he was not questioned by prosecutors at that time, Etron said in a statement.
Etron has denied any wrongdoing and said that its operations would not be affected by the search.
The company posted earnings of NT$225.26 million, or NT$0.65 per share for the first quarter, compared with earnings of NT$298.08 million, or NT$0.87 per share, in the same period last year. Sales increased by 41.9 percent to NT$5.09 billion for the first five months of the year.
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