The nation’s listed companies raised about 28 percent more funds on the open market last year from both domestic and overseas investors than a year ago, reflecting a steady growth in the funding needed by companies amid a recovering economy, according to the latest data released by the Financial Supervisory Commission yesterday.
Listed companies raised a total of NT$615.739 billion (US$21.2 billion) in both domestic and foreign capital markets last year, up 27.64 percent from the NT$482.41 billion they obtained in 2009, the commission said in a statement.
In terms of the number of fund-raising cases on the public market, there were 413 cases last year, up from 275 reported a year earlier, the statement said.
However, the total amount of funding raised through private placement deals reached NT$91.35 billion last year, down 44.28 percent from NT$163.943 billion in 2009, the FSC data showed.
The ratio of private placements to total funding was 12.92 percent last year, down from 25.36 percent in 2009 and 26.03 percent in 2008, the data showed.
The declines in private placements last year came after the financial regulator imposed tougher measures on listed companies seeking to raise funds through private placements to better safeguard the public interest, unless the firms showed themselves to be experiencing financial and operational difficulties and are in urgent need of capital injection.
The strong equity market last year was another reason that listed companies decided to raise money on the open markets rather than via private placements, the commission said.
As for the purpose of the fund raising, 35.06 percent of listed firms said they needed fresh capital to expand factory facilities and 32.06 percent sought to use the money to strengthen working capital. Electronics companies led in raising funds last year, followed by plastics manufacturers, the commission said.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US