China Dadi applies for issue of 16mn new shares

Staff writer, with CNA

Mon, Nov 11, 2013 - Page 14

China Dadi Chemical Ltd (中國大地化工), which operates a broad production base in China, has filed an application with the Taiwan Stock Exchange (TWSE) to launch a primary listing on the main board, the exchange said on Saturday.

According to a prospectus filed with the TWSE, China Dadi, which produces liquid sodium hydroxide, liquid chlorine, bromine and other chemical products, is planning to issue 16.05 million new shares for the listing, with 10 percent of the new shares to be assigned to its employees on a subscription basis.

China Dadi said it has tentatively set the issue price at NT$70 with the intention of raising about NT$1.12 billion (US$38 million), adding that it is planning to use the funds as working capital for future business expansion, while allocating some to pay off debts.

As of June, the chemical company had NT$15.06 billion in total debt, according to the prospectus.

The Cayman Islands-registered company said it aims to list its shares on the main board in the second quarter of next year after the exchange approves the listing plan.

China Dadi runs a production complex in Shouguang, Shandong Province, and its sales are generated exclusively in the China market.

In the first half of this year, China Dadi posted NT$197.51 million in net profit, or NT$2.56 in earnings per share (EPS), on consolidated sales of NT$3.40 billion.

Last year, the company’s net profit totaled NT$283.84 million or NT$3.68 in EPS on consolidated sales of NT$5.44 billion.