Chailease Holding Co (中租控股), a Taipei-based financial leasing firm, said yesterday it had raised up to US$206.16 million by issuing new global depositary receipts (GDR), according to a company filing to the Taiwan Stock Exchange before the market closed.
Chailease, which is registered in the Cayman Islands, said in the filing that it sold 24 million GDRs at US$8.59 each on Wednesday, which would be traded on the Luxembourg Stock Exchange.
Kevin Liao (廖英智), a Taipei-based spokesman for the company, said Chailease would issue 120 million new common shares to back up the GDR sale, which means each GDR represents five common shares.
The company said earlier it planned to use the proceeds from the GDR sale to strengthen its financial profile and fund future business expansion across the Taiwan Strait.
With the pricing of each GDR equivalent to NT$50.5 per common share, based on an exchange rate of NT$29.399 against the US dollar, the new GDRs were being sold at a 6.48 percent discount to Chailease shares’ closing price of NT$54 on Tuesday.
Chailease shares closed 4.07 percent lower yesterday at NT$51.8, narrowing the GDR discount to 2.51 percent. It has risen 107.2 percent from its initial public offering price of NT$25 on the Taiwan Stock Exchange on Dec. 13 last year.
With a share capital of NT$7.85 billion (US$268.3 million), Chailease deals in leasing, installment sales, factoring, direct financing and debt collection. Despite its small size relative to its global peers, Chailease enjoys a dominant franchise in Taiwan’s leasing and installment finance sector, and it has increasingly focused on car rentals, car leasing and insurance brokerage, as well as the Chinese market.
The company posted record high sales of NT$1.97 billion last month, up 11.38 percent month-on-month and 31.71 percent year-on-year.
In the first nine months, accumulated sales totaled NT$15.68 billion, up 31.14 percent from the previous year, according to a separate filing to the Taiwan Stock Exchange.
On Aug. 31, the company told investors it posted a net profit of NT$1.83 billion, or earnings per share of NT$2.33, during the first half of the year, with its Taiwanese operations accounting for 67 percent, while 31 percent was made in China.