Shares of Hermes Microvision Inc (HMI, 漢微科), one of the nation’s leading semiconductor inspection tool and facilities suppliers, came under pressure yesterday after the company priced its global depositary receipts (GDRs) at a more than 7 percent discount, dealers said.
However, the downtrend could be short-lived, since HMI has been benefiting from the continued expansion of its major clients, dealers said.
The company’s stock lost 4.31 percent yesterday to close at NT$887 (US$30) on the GRETAI Securities Market, where the index ended down 0.97 percent at 121.47 points.
The stock encountered heavy selling soon after trading began as investors took their cues from the firm’s GDR pricing and the trend continued until the end of the session, analysts said. They said the discount pricing decision was made after taking into account the broader market languishing in the doldrums.
HMI said in a statement that it priced its GDRs at US$29.17 per unit, about 7.2 percent below the stock’s closing level on the over-the-counter market on Thursday. It said it is issuing 5 million GDRs, each representing one common share of the company, in a bid to raise US$145.85 million in funds.
The integrated circuit inspection tool maker said its GDRs would be listed on the Luxembourg Stock Exchange, but the listing date has not yet been finalized.
The funds from the GDR sale are to be used for research and development of new products and to boost its international visibility, HMI said.
Although the GDR sale would boost the company’s paid-in capital and dilute its earnings per share in the short term, it is necessary to strengthen its research and development capability, it said. The fund-raising would have positive value for shareholders in the long run, the firm added.
With its share price falling below the NT$900 mark, the stock has become technically weaker and further losses can be expected in light of the GDR discount, analysts said.
The company posted NT$24.84 in earnings per share for the first nine months of the year, up from NT$16.32 in the same period last year.