Kinpo Electronics, a major local calculator manufacturer, plans to issue global depository receipts on up to 40 million Compal Electronic shares it holds, a Kinpo spokesman told Bridge News yesterday. The funds raised from the share sale will be used to finance expansion of a Kinpo factory in Thailand, the spokesman added.
"A joint meeting of Kinpo's directors and supervisors approved the GDR plan.
"Kinpo will file an application with related authorities next week, hoping the share sale plan will be realized as soon as possible," the spokesman said.
Currently, Kinpo owns about 110 million Compal shares, or a 9.48 percent stake in the firm, which makes notebook computers.
"The Thailand factory is desperate for funds for expansion. Its revenue is expected to double over the next two years to 40 billion Thai baht due to a recovery in demand," the spokesman said.
The spokesman said based on Compal's current share price, the proceeds of the GDR plan are expected to reach NT$3.187 billion (US$100.2 million).
"Of course, the exact size of the proceeds will depend on stock market movements when the GDR plan is carried out," the spokesman said.
The spokesman said the GDRs are likely to be listed in Luxembourg.
"Details need to be figured out. Kinpo is in talks with several potential foreign-based underwriters for the GDR issue," he said.
At market close yesterday, Compal was down NT$3.00 at NT$104.00, while Kinpo was NT$3.20 higher at NT$49.70.
RSS