Wed, Jun 27, 2007 - Page 11 News List

Chailease Finance to sell 225m shares in Singapore IPO

STAFF WRITER

Chailease Finance Co (中租迪和), which became a wholly owned subsidiary of Cayman Islands-registered Financial One Corp late last month, will see its parent company raise net proceeds of US$203 million in an initial public offering (IPO) in Singapore, Reuters reported yesterday.

The company has set an indicative price of US$0.75 to US$0.90 a share and plans to sell 225 million shares, a source close to the deal said.

Chailease Finance was established in 1977 under the Chinatrust Group (中信集團) as a provider of leasing, installment, factoring, corporate direct loan and offshore financing services. Its customers are mainly small and medium-sized enterprises in Taiwan, the US, Thailand and China.

Late last year, the company announced it would swap 100 percent of its shares with Financial One, according to a statement made to the Taiwan Stock Exchange dated Nov. 7.

Chailease Finance said at the time that after the share swap, Financial One would trade on the Singapore Stock Exchange and use the net proceeds to expand its business.

On May 30, the two companies completed the share swap, with one Chailease Finance share exchanging for one Financial One share.

Chailease Finance elected a new board of directors, with Chen Fong-long (陳鳳龍) appointed by Financial One as the new chairman, a filing with the Taiwan Stock Exchange said.

Financial One filed its prospectus with the Monetary Authority of Singapore last month, the report said, citing JPMorgan as the lead manager and underwriter for the company's IPO.

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