Tue, Sep 18, 2018 - Page 12 News List

Shanghai Commercial and Savings unveils IPO

LOCAL BOURSE:The listing price is to be calculated on Friday, but prices moved between NT$34 and NT$36 last month, bank general manager John S.C. Chen said

By Kao Shih-ching  /  Staff reporter

Shanghai Commercial and Savings Bank Ltd (上海商業儲蓄銀行) yesterday presented its initial public offering (IPO) plan, with the listing to debut on the local bourse on Oct. 19.

The IPO would help the bank diversify financing instruments whether through expanding the scope of its business or conducting merger and acquisitions (M&As), bank general manager John S.C. Chen (陳善忠) said.

Asked about the listing price, Chen said it depended on the average share price 30 days before the listing, adding that the price would be calculated after Friday.

Shares in the bank have been traded on the Taipei Exchange since 2014, with prices moving between NT$34 and NT$36 last month.

In May, the Taiwan Stock Exchange’s Securities Listing Review Committee approved the bank’s application for an IPO.

The bank has maintained good performance over the past three years, Chen said.

With its market value reaching nearly NT$145 billion (US$4.7 billion) as of yesterday, the bank would be the largest IPO in the past few years, he said.

The bank reported earnings per share of NT$3.04 for last year and distributed a cash dividend of NT$1.80 to shareholders.

In the first half of this year, the bank saw its net income increase 6.8 percent year-on-year to NT$6.65 billion, with earnings per share rising from NT$1.53 to NT$1.63 over the period, company data showed.

The bank has 69 branches in Taiwan, Chen said, adding that “it is not too many.”

New branches would be needed, as the bank estimates that the optimum number for Taiwan would be more than 70, he said.

“However, the authorities do not want too many branches,” Chen said.

If the bank plans to add branches, the bank might consider an M&A, he said, adding that the bank has not begun talks with potential companies.

“After the IPO, we will consider it [M&A], and we will not miss any good opportunities,” Chen said, adding that potential targets are banks and insurance companies.

As part of its IPO, the bank plans to issue 22.5 million new shares, of which 2.5 million shares would be reserved for employees, with the remaining shares being underwritten by brokerages before the IPO.

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