Pump manufacturer Koge Micro Tech Co Ltd (科際精密), which has paid-in capital of NT$27 million (US$892,090), is today to make its debut on the emerging market with an initial public offering (IPO) price of NT$75.
Headquartered in New Taipei City, the firm operates a plant in China’s Xiamen to manufacture a wide range of precision pumps and valves, with a daily production capacity of about 70,000 units.
The company on Tuesday told investors at a pre-IPO presentation that it expects growth momentum in its automotive pumps segment, as it has seen some Chinese automakers install massage seats and back support devices as standard in their vehicles.
Company data showed that car-related products remain the company’s main revenue source, making up about 40 percent of its sales, while pumps used in medical equipment and home appliances make up 36 percent and 19 percent respectively.
Koge’s major customers in the automotive industry include tier-one car component suppliers, such as Faurecia Group, Alfmeier Corp and Continental AG.
The company also secured orders from the supply chains of Chinese automakers, including Geely Automobile Holdings Ltd (吉利汽車) and Great Wall Motor Co Ltd (長城汽車).
By geographic breakdown, revenue generated by Chinese customers took up nearly 84.48 percent of its total sales in the first half of this year, while European clients contributed 5.26 percent.
The company did not disclose its capital expenditure for this year, but said it would allocate more research and development resources to products that have greater market potential, referring to diaphragm, centrifugal and piezoelectric micro pumps installed in portable devices.
Koge spent about NT$79.88 million on research and development last year, higher than the NT$23.37 million spent in the previous year, the company’s prospectus showed.
The company is also working on several capacity expansion projects in China, with two new production lines in Xiamen expected to begin manufacturing by the end of the year, boosting its daily capacity to between 80,000 and 85,000 units.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
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