Wed, Jan 07, 2015 - Page 14 News List

Aero Win set to launch initial public offering

By Amy Su  /  Staff reporter

Aero Win Technology Corp (寶一科技), a local manufacturer of aerospace components for aircraft engines, is scheduled to launch its initial public offering (IPO) on the main bourse on Jan. 27 in a bid to raise funds for capital spending.

The company is expected to set its preliminary price at about NT$16 per share, according to market estimates.

Its shares closed at NT$20.94 on the Emerging Stock Market yesterday.

“To accommodate rising orders, the company is set to launch a capacity expansion plan next year, hoping to boost annual sales to NT$1 billion [US$31.26 billion],” Aero Win Technology chairman Nelson Tseng (曾煥明) said at a press conference on Monday.

Boeing Co has predicted that an estimated 36,770 aircraft worth US$5.2 trillion will be delivered around the world from last year to 2033.

The total value of the aircraft engine market, accounting for 30 percent of aircraft manufacturing costs, might reach US$1.56 trillion over the next 20 years, according to industry estimates.

Tseng said the company could see its sales grow by between 10 and 15 percent annually on the back of the booming global aviation market.

The company counts French multinational aircraft and rocket engine manufacturer Snecma SA and US engine maker Pratt & Whitney among its major clients, Aero Win Technology vice president Susan Hu (胡淑賢) said.

The company is a tier-one aerospace component supplier, with 80 percent of its sales coming from products directly provided to downstream companies without involving an intermediary or other manufacturers, Hu said

“Aero Win’s major products are technology intensive, meaning high entry barriers for rivals,” Hu said.

The company’s net income in the first three quarters of last year reached NT$30.05 million, or NT$0.49 per share, with consolidated sales in the first 11 months of last year growing 6.03 percent year-on-year to NT$700.28 million.

This story has been viewed 1914 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top