Wed, Mar 05, 2014 - Page 13 News List

Wintek board votes for issuing GDRs to raise up to US$71m

By Kevin Chen  /  Staff reporter

The board of Wintek Corp (勝華), which supplies handset display modules and touchpanels, yesterday approved management’s plan to raise capital through the sale of global depositary receipts (GDRs).

The Greater Taichung-based company said in a stock exchange filing that its board of directors approved the fund-raising measure by issuing between 150 million and 200 million new common shares to back up the GDR sale.

Based on Wintek’s Jan. 9 filing, the company plans to raise between US$53.4 million and US$71.2 million through the sale of GDRs.

The amount of the new shares issued represents a dilution of between 8.16 and 10.88 percent of the company’s current outstanding 1.84 billion shares.

Proceeds from the GDRs issue — which is subject to the approval of shareholders, whose decision is scheduled to be announced on May 23 — will be used to fund the procurement of raw materials overseas and repay debts, the company said.

It added that the issuance is also pending review and approval by the Financial Supervisory Commission.

The details of the GDRs issue, such as the possible prices of each unit and the timeframe of the sale, have not yet been decided, Wintek said.

JPMorgan Securities said the fund-raising initiative is likely to take place in the first half of the year as Wintek has up to NT$9 billion (US$29 million) in debt maturing within a year, while Credit Suisse said it expects the company to launch the deal in the upcoming weeks to take advantage of improving sentiment in the touchpanel industry.

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