Airtac International Group (亞德客) on Wednesday said its board approved a plan to raise NT$2.6 billion (US$85.77 million) in new capital through the issuance of 10 million new shares in a bid to repay bank loans and replenish operating capital.
The pneumatic components supplier priced the new shares at NT$260 apiece, a discount of 13.5 percent based on yesterday’s closing price of NT$295 in Taipei trading, which was up 1.72 percent from a day earlier.
Airtac, which has paid-in capital of NT$1.79 billion, said it would finish its capital raising efforts in the third quarter of this year.
A portion of the new capital would be used for ongoing expansion projects in Taiwan and China, which would help increase its overall capacity by nearly 20 percent this year, a company official said by telephone yesterday.
Airtac is the second-largest pneumatic component maker in China, with a 16 percent share of the Chinese market last year.
It operates three production bases, one in Tainan, and in two in China — Foshan, Guangdong Province, and Ningbo, Zhejiang Province — with an annual production value last year of about 1.7 billion yuan (US$249.1 million).
Airtac plans to start operations at its second plant in Ningbo by the end of this year and at a new plant in Tainan’s Tree Valley Park (樹谷園區) in the first half of next year, the official said.
The company posted a record net profit of NT$2.03 billion last year, up 47 percent from NT$1.38 billion in 2015.
With earnings per share of NT$10.72 for last year, Airtac’s board has proposed a cash dividend of NT$5.5 per share, compared with NT$4 last year.
The proposed dividend translates into a payout ratio of 56 percent and a dividend yield of 18.6 percent, based on yesterday’s closing stock price in Taipei.
In related news, Symtek Automation Asia Co Ltd (迅得機械) yesterday said it plans to make its debut on the over-the-counter market next month.
Symtek, which provides intelligent automation equipment and robotic arms, is to issue 6.6 million new common shares in the hope of raising NT$66 million to increase its capital from NT$462 million, according to a company filing with the Taiwan Stock Exchange.
The company’s customers include Foxconn Technology Group (富士康), Advanced Semiconductor Engineering Inc (日月光半導體) and AU Optronics Corp (友達光電).
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