The second round of share sales for shipbuilder CSBC Corp, Taiwan’s (台灣國際造船) initial public offering (IPO) ended on Wednesday, having attracted more than 50,000 retail investors.
The IPO is expected to be completed by reducing the government’s shares in the company to 47 percent, CSBC underwriter Fubon Securities Co (富邦證券) said.
The retail portion of the IPO began on Monday, with each investor limited to 2,000 shares. Fubon said it had received 60,000 subscriptions in the first two days, or about 68.2 percent of the total subscription amount.
Fubon said it should be able to receive subscriptions for 100 million shares in the retail and institutional tranches by the close of the IPO on Wednesday, adding that 80 million of the government’s shares were expected to be sold out by then.
Based on the 100 million subscriptions, the lot-winning rate was around 87 percent, higher than that of average IPOs, which usually fall between 5 percent and 10 percent, Fubon said.
However, considering the large number of shares that CSBC was issuing, plus the fact that the company had just finished its first round IPO share auction, Fubon said it had not been easy to attract 50,000 retail investors and raise NT$1.3 billion (US$38.8 million).
CSBC employees’ could subscribe at a price of NT$13.31 per share, compared to the retail price of NT$13.41. The employee subscription rate was 80 percent, Fubon said.