Elpida Memory Inc, the world’s third-largest maker of computer memory chips, said it would sell 10 million shares as part of a plan to list depositary receipts in Taiwan.
The Tokyo-based chipmaker will begin marketing Taiwan depositary receipts (TDRs) on Monday and trading may start on Feb. 25, the company said in a statement yesterday.
The offering will dilute the value of Elpida’s 203.1 million shares outstanding by 4.92 percent, the statement said.
Listing in Taiwan, where the chipmaker already has a joint venture and outsourcing agreements with Powerchip Technology Corp, would allow Elpida to raise money and deepen alliances in the country, company president Yukio Sakamoto said in October.
Elpida said last month it’s close to a deal with Powerchip that would make the Taiwanese manufacturer an exclusive supplier, helping free up factory capacity in Japan for higher-priced chips used in smartphones and tablet computers.
Elpida will suspend the sale if its share price falls below NT$390 (￥1,103, or 15 percent below the closing price on Feb. 7), Tokyo-based spokesman Hiroshi Tsuboi said in a telephone interview. Proceeds from the sale, which was approved yesterday by the Taiwan Stock Exchange, would be used to pay for research and development on next generation manufacturing processes for the company’s DRAM chips.
Shares of Elpida slipped 2.4 percent to ￥1,261 at the 3pm close on the Tokyo Stock Exchange before the announcement.