Lida Holdings Ltd (力達控股), which produces air compressors in China, yesterday saw its shares rise 27 percent after its local debut on the Taiwan Stock Exchange.
Shares in the company, which is headquartered in Quanzhou, Fujian Province, raised NT$1.12 billion (US$34.94 million) in its initial public offering (IPO) on the main board, touching NT$126.5 at one point, 31.77 percent higher than its IPO price of NT$96, before easing slightly to close at NT$122.
The IPO underlines the 23-year-old company’s ambition to expand its market share in China, where it operates two manufacturing subsidiaries and its products are known under brands such as LUOWEI (羅威) and LIDA (力達).
The company told investors at a pre-IPO presentation last month that it plans to help their tier-1 Chinese distributors to expand their distribution and user networks to further establish its foothold in that market.
The Chinese government’s policy of focusing on industrial automation might help stimulate demand for air compressors, Lida said.
The Chinese air compressor market is expected to reach 45.6 billion yuan (US$6.83 billion) by 2019, the company said.
Lida also sells its products, including piston compressors, crew compressors and scroll compressors, to Europe, North America, Turkey and South Africa.
Lida said it also plans to expand its sales in the Southeastern Asian market.
The company enjoyed NT$93 million revenue from Indonesia last year, increasing 39 percent annually.
Lida reported revenue of NT$7.62 billion last year, with earnings per share of NT$10.38.
In the first half of the year, revenue increased 9.62 percent year-on-year to NT$3.97 billion, the highest in the company’s history.
Looking forward, the company said its “growth driver” is the F-variable frequency compressor, which can set air pressure at any desired level for energy efficiency.
Full-year revenue of the product is expected to reach NT$350 million this year, Lida said.
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