Hon Hai subsidiary picks Taiwan for IPO

By Lisa Wang  /  Staff reporter

Thu, Sep 13, 2018 - Page 12

Fitipower Integrated Technology Inc (天鈺科技), Hon Hai Precision Industry Co’s (鴻海精密) driver IC design arm, has picked Taiwan for an initial public offering (IPO) by the end of the year, bucking a local preference for listing in Shanghai.

Hon Hai in June listed shares of its Chinese subsidiary Foxconn Industrial Internet Co (FII, 富士康工業互聯網) on the Shanghai Stock Exchange, prompting concern that more local firms would list in China.

Hon Hai owns about 39 percent of Fitipower via its investment companies and LCD panelmaking subsidiary, Innolux Corp (群創).

Fitipower plans to offer 18.9 million new shares for the IPO at NT$38 each.

Fitipower shares yesterday fell 2.71 percent to NT$42.34 on the Taiwan Emergent Market in Taipei.

The Hsinchu-based company is scheduled to provide its business outlook during an investors’ conference on Wednesday next week, it said in a filing with the Taiwan Stock Exchange.

Fitipower in June submitted a second IPO application to the exchange, after backing down from an earlier request for unspecified reasons on the eve of a pre-IPO investors’ conference.

The exchange approved the plan last month. Grand Fortune Securities Co Ltd (福邦證券) has been hired as an underwriter.

Fitipower saw profits surge to NT$160.63 million (US$5.21 million) in the first half of this year, compared with NT$52.65 million in the same period last year. That translated into earnings per share (EPS) of NT$1.16, up from NT$0.39 a year ago.

Last year, the company reported NT$151.32 million in net profit, plunging 53 percent from NT$320.65 million in 2016. EPS last year fell to NT$1.11 from NT$2.39 in 2016.