Shares of Tatung Co (大同), a 93-year-old home appliances maker, rose 3 percent to close at NT$16.50 on the Taiwan Stock Exchange yesterday, the first day of share trading after the completion of its capital reduction.
The company suspended trading of its shares on March 23 for the capital reduction exercise, with its shares closing at NT$6.75. It resumed trading yesterday with a new listing price of NT$16.02.
In January, the Financial Supervisory Commission approved Tatung’s plans to reduce capital by NT$32 billion (US$1.1 billion) and sell US$200 million of overseas convertible bonds to boost its financial structure.
CAPITAL CUT
The move cut its capital by 58 percent as it annulled 3.21 billion in existing common shares to cover losses accumulated in recent years, which stemmed from money--losing subsidiaries such as flat-panel maker Chunghwa Picture Tubes Ltd (中華映管).
REVENUE UP
Tatung yesterday posted revenue of NT$3.5 billion for last month, up 15.7 percent year-on-year. Total revenue hit NT$9.38 billion for the first quarter, up 5.7 percent year-on-year.
The company had earlier forecast that its revenue would rise 11.1 percent to NT$42.88 billion this year, on earnings of NT$804 million, or NT$0.13 per share.
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