TPK raises more than US$380 mil. overseas
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.