After experiencing fundraising setbacks, Taiwan High Speed Rail Corp (THSRC,
The company announced the plan at its shareholders' conference yesterday in Taipei.
Faced with a growing concern over the company's ability to raise funds to finish the NT$513 billion railway, chairwoman Nita Ing (殷琪) did not give shareholders a specific timetable for the plan, nor the size of the possible share sale to retail investors.
In a telephone interview with the Taipei Times, Arthur Chiang (
When the board will meet to discuss the matter is not known yet, he added.
To get banks loans to finance its NT$513 billion high-speed railway connecting Taipei with Kao-hsiung, THSRC needs to raise NT$7.5 billion by July, NT$10.2 billion by September and another NT$10 billion by November.
It has raised NT$2.9 billion so far, Ing told reporters earlier this month.
The company originally hoped to raise funds through the sales of preferred shares to a designated group of investors including banks, trust companies and THSRC board members. But the lack of interest in the investment, forced THSRC to look for help from retail investors.
THSRC should be able to meet the July funding requirement -- just -- as five major shareholders, including Continental Engineering Corp (
While preparing for the listing application, Chiang said THSRC plans to raise funds from overseas investors in September, when it will test its new trains.
With capital of NT$141.5 billion, THSRC has not decided whether to set a price for its shares or adopt the market price at that time on the unlisted securities market.
THSRC shares hit NT$9.4 yesterday on the unlisted market, up from NT$9.06 in the previous trading day.
Dave Chou (
"The company is losing money and will not see a return even a few years after the trains start running, making the stock one to miss for investors," Chou said.
"Investors have too many bluechips in the market to choose from now that the economy has turned around," he said.
In other developments yesterday, THSRC board members re-elected Ing to a third-term as chairwoman following the shareholders' conference. She has served as chairwoman since 1998.
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