Taipei, April 21 (CNA) GlobalWafers Co. (環球晶圓), a leading silicon wafer supplier in Taiwan, has issued the largest global depositary shares (GDS) by a company listed on the local equity market in more than three years.
In a statement, GlobalWafers said on Friday that it raised US$469 million, or about NT$14.28 billion, in less than one month through sales of (GDS), the largest overseas fund raising activity of this kind by a local enterprise since November 2013.
The company said it has issued 68 million GDS, each one representing one GlobalWafers common share at US$6.9, or NT$210. The issue price represented a 5.6 percent discount on the company's closing price of NT$222.5 on the local over-the-counter (OTC) market on Thursday.
In the wake of the fund raising activity, shares in GlobalWafers gained 0.67 percent to close at NT$224.00 with 10.24 million changing hands on the OTC market, with the index up 0.51 percent at 131.34 points.
GlobalWafers noted that although global financial markets remain concerned over geopolitical issues, foreign investors still rushed to subscribe to the GDS.
The company is planning to use the proceeds from the GDS sale to repay bank loans taken out to acquire U.S.-based SunEdison Semiconductor Ltd. last year.
Chairwoman and Chief Executive Officer of GlobalWafers Doris Hsu (徐秀蘭) said the fund raising activity is expected to increase the firm's financial flexibility, strengthen its shareholder structure and boost global visibility.
Nomura International (Hong Kong) Ltd. served as the joint global coordinator of the GDS sale with Citigroup Global Markets Ltd. the joint bookrunner. The GDS has been listed in Luxembourg.
In December 2016, GlobalWafers completed a deal to acquire SunEdison Semiconductor and take a 17 percent share of the global silicon wafer market, up from 7 percent, making it the third largest supplier in the world.
Following the acquisition, GlobalWafers has 17 operations sites strategically located in 10 countries across the world.
(By Jackson Chang and Frances Huang)