TPK raises more than US$380 mil. over­seas

The China Post - - LOCAL -

TPK Hold­ing Co. ( ), one of Tai­wan’s lead­ing touch panel sup­pli­ers, has raised more than US$380 mil­lion in funds over­seas, with mar­ket an­a­lysts spec­u­lat­ing that the fund-rais­ing is aimed at ex­pand­ing pro­duc­tion to se­cure more or­ders from Ap­ple Inc.

TPK said it has raised about US$134 mil­lion from sales of global de­posi­tary re­ceipts (GDRs) and US$250 mil­lion in over­seas con­vert­ible bonds un­der the plan.

The touch panel’s fund rais­ing ac­tiv­ity is the largest in the Asi­aPa­cific re­gion ex Ja­pan since 2012, although the global cap­i­tal re­mains un­cer­tain at a time when the U.S. Fed­eral Re­serve is likely to kick off an in­ter­est rate hike cy­cle later this year, the an­a­lysts said.

The touch screen maker is­sued 20 mil­lion GDRs at US$6.68 per unit, with each GDR equiv­a­lent of one com­mon TPK share. The sell­ing price rep­re­sented a 4.5 per­cent dis­count on TPK’s closing price of NT$219.00 (US$6.99) on Tues­day. How­ever, the dis­count was the small­est among sim­i­lar GDR sales since 2013.

Mean­while, TPK said that it sold the over­seas con­vert­ible bonds with a five-year ma­tu­rity, but in­vestors are el­i­gi­ble to re­deem the bonds af­ter three years.

The bonds carry a 1.5-per­cent yield and a 15-per­cent con­ver­sion pre­mium over Tues­day’s closing price, the touch panel maker said.

JPMor­ganChase, Bar­clays and HSBC serve as the un­der­writ­ers of the GDR and con­vert­ible bond sales. Mar­ket sources said the two tranches of in­vest­ment in­stru­ments were re­ceived well among for­eign in­sti­tu­tional in­vestors, so that the in­stru­ments were about six times over­sub­scribed.

The sources said that the high buy­ing in­ter­est in the GDRs and bonds re­flected ex­pec­ta­tions that TPK will se­cure or­ders from Ap­ple for pro­duc­tion of the next gen­er­a­tion of iPhones and iPads by the end of this year.

The sources said that many in­vestors have been up­beat that TPK has re­ceived or­ders from Ap­ple for pro­duc­tion of the Ap­ple Watch, which will go on global sale next week.

Shares of TPK rose 3.32 per­cent to close at NT$218.50 on the Tai­wan Stock Ex­change Thurs­day with 7.83 mil­lion shares chang­ing hands, out­per­form­ing the broader mar­ket, which ended up 0.97 per­cent.

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