The Aerospace Industrial Development Corp (AIDC, 漢翔航空工業), a government-owned civilian and military aircraft manufacturer, has set its initial public offering (IPO) price at NT$16.835 or lower for its debut on the Taiwan Stock Exchange (TWSE) by the end of this month.
The company, which has paid-in capital of NT$9.08 billion (US$302.31 million), is set to release 54 percent of its shares to its employees and the public, with the Ministry of Economic Affairs remaining the largest shareholder.
“Through the IPO, we hope to raise the company’s operation efficiency and further strengthen competitiveness,” AIDC chairman Jason Liu (劉介岑) told reporters before the company’s pre-IPO investors’ conference yesterday.
Sales to the civil aviation Bsector account for about 60 percent of AIDC’s overall revenue, with those generated by defense security contributing the other 40 percent, the company said in a statement.
Following the IPO, the company aims to boost the sales contribution of the civil aviation sector to diversify its business and lead its supply chain, which comprises more than 100 local companies, to strengthen the development of the aerospace industry, Liu said.
AIDC president Butch Hsu (徐延年) said the company has seen its order visibility extend to the next five to 10 years, based on the high number of long-term orders it holds, which account for more than 80 percent of its total orders.
AIDC took nearly NT$50 billion worth of new orders last year, with a further NT$21.5 billion in new orders in the first half of this year, Hsu said.
Under the government regulations, Chinese investors are not allowed to invest in AIDC either before or after its primary listing, given national defense and security concerns, AIDC said.
However, other foreign investors are allowed to buy and sell the company's shares after its listing on TWSE, the company said.
AIDC saw net profit last year total NT$1.29 billion, or NT$1.42 per share, with earnings per share in the first six months of this year standing at NT$1.0.
In related news, Magnate Technology Co Ltd (晟田科技工業), which manufactures aerospace components and assembles products in Taiwan, with AIDC its largest client, saw its shares rally more than 50 percent on its debut on the over-the-counter (OTC) GRETAI Securities Market yesterday.
The company’s shares closed at NT$73.3 yesterday, rising NT$25.3, or 52.71 percent, from its listing price of NT$48, while the GRETAI Securities index rose 0.27 percent.
Earlier this month, Magnate Technology chairman Young Hsieh (謝永昌) said the company would use most of the funding received through its listing for capital expenditure, amid a bullish outlook for the industry.
The steady increase in demand could help the company post double-digit growth in its consolidated revenue this year, Hsieh added.