ASMedia Technology Inc’s (祥碩) shares rocketed about 31 percent on its trading debut on the main bourse yesterday after receiving bids for more than 350 times the number of shares on offer.
The positive response to the initial public offering prompted the storage controller chip designer to raise its offering to 2.6 million shares, from the 434,000 shares it originally planned.
Shares of ASMedia soared to NT$81.1 yesterday, compared with the debut price of NT$62 per share, after raising NT$161.2 million (US$5.55 million), indicating investors’ optimism about the company’s growth amid growing demand for huge data transmission capabilities.
The company pins its growth on the uptake of the next-generation USB 3.0 platform and Intel Corp’s Thunderbolt interface in the second half of next year as more computers, including Ultrabooks, are to adopt the new platform to facilitate transmission of large amounts of data.
The USB 3.0 controller chips and controller chips for USB 3.0-enabled devices accounted for nearly 60 percent of ASMedia’s revenue of NT$1.45 billion last year.
The USB 3.0 interface enables data transmission 10 times faster than USB 2.0.
The chip designer is expected to grow revenue by 25 percent this year from last year, with earnings per share hitting NT$5.7 this year, from NT$4.6 last year, Yuanta Investment Consulting Co (元大投顧) forecast.
Last month’s revenue was NT$101.61 million, up 7.35 percent from NT$94.65 million in October and 1.96 percent higher than NT$99.66 million a year ago, mainly attributable to major customer Asustek Computer Inc (華碩電腦).