TSMC unit Xin­tec to list on OTC mar­ket

The China Post - - LOCAL -

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.

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