Taiwan's Formosa Group To Delay Nanya Tech IPO To August
TAIPEI (Dow Jones)--Taiwan's the Formosa Plastics Group plans to put off the initial public offering of Nanya Technology Corp. to August in the hopes the IPO price could be higher then, said a group official Thursday.
Nanya Tech, a dynamic random access memory chip maker, is expected to debut on the Taiwan Stock Exchange around mid-August, said Wu Chia-chau, senior vice president of Nan Ya Plastics Corp. (1303.TW), a core member of the Formosa Plastics Group that owns 54.6% of Nanya Technology.
The group previously planned to list Nanya Tech in June, but is putting it off as expected higher DRAM prices in August will likely mean a higher share price for Nanya Tech, according to Wu.
The group will release 62 million shares in Nanya Tech, or a 2.75% stake, in the IPO, reducing the group's total holding to 70% from 72.75%, Wu said, adding the group hasn't set a price for the IPO.
Nanya Tech is capitalized at NT$22.5 billion (US$1=NT$30.811), according to Wu.
Nanya Tech is forecasting its 2000 net profit will come in at NT$6.54 billion, up from NT$1.27 billion in 1999, while revenue will reach NT$23.27 billion in 2000, up from NT$9.27 billion a year ago.
In the gray market where shareholders trade unlisted stocks, the stock was trading at NT$73.50. |
