TAIPEI, Taiwan — Japan-based memory chipmaker Elpida Memory, Inc. is scheduled to list Taiwan depositary receipts (TDRs) on Taiwan’s main board Feb. 25, underwriter KGI Securities said yesterday. A public subscription for the TDR offering is scheduled to start Feb. 10 and the issue price is expected to be determined Feb. 18, the underwriter said.
Elpida, the world’s third-largest DRAM chipmaker, is expected to become the first Japanese firm to launch a listing in Taiwan, according to KGI.
An application for the listing was approved by Taiwan’s Financial Supervisory Commission in late December.
According to an announcement issued by the Japanese firm, it will issue 200 million TDRs, each of which will represent 0.05 common shares of the company, which has been listed on the Tokyo Stock Exchange since 2004.
Elpida is expected to raise about 12.3 billion Japanese yen from the TDR offering and plans to use the proceeds on research and development of its next generation DRAM manufacturing process by the end of December.
The company, which was set up in 1999 through an integration of the DRAM businesses of NEC and Hitachi, said it believes the proceeds will strengthen its capital base and contribute to improving its profitability.
In an earlier statement, Elpida said it expects the TDR listing to enhance the company’s presence in Taiwan, not only among business clients but also among local investors.
Elpida and Taiwan-based Powerchip Technology Corp. have set up a joint venture called Rexchip Electronics Corp., while the Japanese firm has also built alliances with Winbond Electronics Corp. and ProMOS Technologies Inc., also Taiwanese companies.