Sat, Apr 12, 2014 - Page 14 News List

ChipMOS Technologies up 48% after TWSE debut

MOVING ON UP:ChipMOS shares used to be listed on the Emerging Stock Market. The firm’s launch on Taipei’s main board saw 16.44 million shares change hands

Staff writer, with CNA

Shares of ChipMOS Technologies Inc (南茂科技), a Hsinchu-based integrated circuit packaging and testing services provider, moved sharply higher yesterday after its debut on the Taiwan Stock Exchange (TWSE) in Taipei.

Dealers said the strong showing reflected an upbeat outlook on earnings in the global semiconductor business on expectations that the industry will rebound strongly in the second quarter after inventory adjustments in the previous two quarters.

With the broader market spooked by a drop on Wall Street overnight, investors rushed to seek new targets, such as ChipMOS, to park their funds, dealers said.

Shares of ChipMOS rose 48.11 percent from an issue price of NT$26.50 and closed at NT$39.25, with 16.44 million shares changing hands on the main board.

The weighted index on the TWSE ended down 0.45 percent at 8,908.05 points.

Before the TWSE listing, ChipMOS shares had been traded on the preparatory board Emerging Stock Market since April 19 last year.

For the main board listing, the company sold 21.76 million new shares, raising more than NT$576 million (US$19.2 million) for future expansion and financial structure improvement.

Analysts said ChipMOS’ gross margin for the first quarter could rise to about 20 percent, compared with 17.52 percent last year, on growing demand for chips for mobile devices.

It could post an 8 percent to 10 percent sequential increase in sales this quarter and it is likely to post about NT$3 in earnings per share this year, compared with NT$2.76 last year, analysts said.

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