TSMC unit Xintec to list on OTC market
Xintec Inc. ( ), an integrated circuit packaging services subsidiary of Taiwan Semiconductor Manufacturing Co. (TSMC,
), will list on Taiwan’s over-thecounter (OTC) market on March 30.
It has set an issue price of NT$42 (US$1.34) per share for the 30 million new shares to be put on the market and hopes to raise NT$1.26 billion.
After the new share issuance, Xintec’s paid-in capital will increase by NT$300 million, based on each share’s par value of NT$10, to NT$2.68 billion.
Xintec, which specializes in three dimensional wafer level chip scale packaging, said it will use the funds as working capital for future development and to strengthen its finances by repaying debt.
The company said that after the move to reduce debt, its debtto-asset ratio will fall to 31.98 percent by the end of this month, compared with 47.27 percent at the end of December.
The loan repayment will help save the company an estimated NT$ 11.32 million in interest expenses this year and about NT$15 million a year in the fu- ture, Xintec said.
According to the prospectus, TSMC, the world’s largest chip maker, currently holds a 39.85 percent stake in Xintec, and current and former TSMC executives are involved in the company’s management.
Robert Kuan ( ), the former director of TSMC’s Special Projects Division, is Xintec’s chairman and president, and Lora Ho, TSMC’s chief financial officer, sits on Xintec’s board of directors.
Market sources said that after adding in indirect shareholdings, TSMC owns a roughly 48 percent stake in Xintec, and TSMC’s im- portant role in the the company has helped the listing attract considerable market attention.
TSMC is Xintec’s biggest customer, accounting for about 35 percent of the IC packaging and testing services company’s total revenue, ahead of U.S.-based OmniVision Technologies Inc., which accounts for 29 percent of Xintec’s revenue.
Xintec had earnings per share of NT$2.65 in 2014, up from NT$1.22 seen a year earlier.
In the first two months of this year, Xintec’s consolidated sales rose 59.47 percent from a year earlier to NT$944 million.