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Nanya to raise funds through share sale

Nanya Technology Corp’s (南亞科技) board yesterday approved a plan to sell 800 million shares to finance the construction of a new advanced plant and repay debts.

The nation’s biggest maker of computer memory chips has not set a price for the shares, but said they would be issued above par value, a Taiwan Stock Exchange filing showed.

Based on the stock’s closing price of NT$21.65 yesterday, the Taoyuan-based chipmaker could raise NT$17.32 billion (US$535 million) from the sale.

Nanya plans to use the proceeds to purchase more equipment for its first 12-inch plant and to repay corporate bonds, it said.

This will be the second fund-raising by Nanya this year. In June, the company raised NT$12.22 billion by issuing 1 billion new shares at NT$12.22 a share. The shares were bought by fellow Formosa Plastics Group (台塑集團) companies, given low investor interest in buying memory shares amid declining product prices at the time.

The spot price of dynamic random access memory (DRAM) chips rose 0.76 percent to US$1.84 per unit yesterday, bringing it closer to producers’ cost level of US$2 per unit, researcher DRAMeXchange Technology Inc (集邦科技) said.

Nanya said it hoped to wrap up the fundraising deal by the end of this year. It plans to turn out out 36,000 12-inch wafers a month from the new plant, using advanced 50-nanometer technology.
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