Taiwan’s Innolux aims for 4th quarter


Reuters

TAIPEI, Taiwan — Taiwan’s Innolux, the world’s No. 2 maker of LCD monitors, aims to float as much as US$1.3 billion in global depositary receipts (GDRs) in the fourth quarter, a source familiar with the situation said yesterday.

The company has not yet decided exactly how much money it will try to raise through the new share offering, but it could be the largest GDR offering by a Taiwan company this year, said the source, speaking on condition of anonymity.

Innolux Display Corp announced plans for the offering earlier this year, but had not given a timetable.

It previously said its board authorized the issue of up to 500 million new shares for the offering, but in August scaled back the number to 300 million.

Based on the company’s Friday closing price of NT$140 (US$4.28) per share, the offering could be worth up to NT$42 billion, or about US$1.28 billion.

“They haven’t decided yet on how much they want to sell,” the source said. Innolux said in March it planned to issue the new shares to raise new funds. It said in August it is also planning a NT$10 billion convertible bond offering, although it has not announced any timetable.

The company, part of Taiwan’s top electronics gear maker Hon Hai, said it planned to build a new LCD plant, using advanced technology to make bigger panels for TVs to tap the fast-growing flat-screen TV market. Innolux competes with TPV, the world’s top PC monitor maker, and Samsung Electronics among others. On Thursday Taiwan’s No. 2 LCD panel maker, Chi Mei Optoelectronics said it would buy a 7.7 percent of stake of TPV for US$104.5 million.