China Steel Corp (中鋼), the nation’s biggest steelmaker, will seek to raise as much as US$743.53 million by issuing 37.8 million global depositary receipts (GDRs) — each of which represents 20 China Steel common shares — at an average price of US$19.67.
In a stock exchange filing yesterday, the Siaogang District (小港), Greater Kaohsiung-based company said it would use the proceeds from the GDR sale to fund the procurement of raw materials overseas.
China Steel said it would issue the GDR on Aug. 1 and it would be traded on the Luxembourg Stock Exchange.
With the pricing of each GDR equivalent to NT$28.32 per common share (based on an exchange rate of NT$28.793 against the US dollar), the new shares are being sold at a 4.49 percent discount from China Steel’s closing price of NT$29.65 on Tuesday.
China Steel shares closed 1.52 percent higher yesterday at NT$30.1.
Analysts said the company might use part of the proceeds to fund a second blast furnace at Dragon Steel Corp (中龍), a China Steel unit based in Longjing District (龍井), Greater Taichung. The new furnace is under construction and is scheduled to start production in 2013.
The company might also use the proceeds to support its expansion plans for cold-rolled coils, which are used mainly in the automotive industry, as well as to make strategic investments in global mining companies that would help the firm secure a steady supply of raw materials, such as iron ore and coking coal, Citigroup Global Markets said in a note on July 18.
China Steel yesterday downplayed the potential share dilution caused by the GDR issue, saying instead the funds raised would help strengthen its balance sheet.
Citigroup estimated the potential dilution at about 6 percent, while Daiwa Capital Markets predicted a 5.9 percent dilution to its earnings per share over the next two years.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
RSS