ASIA: Taiwan Flat-Screen Maker Raises $573 Million in GDRs

Global Finance, Dec 2003 by Platt, Gordon

Taiwan-based Chi Mei Optoelectronics, which produces thin-film transistor, or TFT, liquid crystal displays for flat-screen computers, cell phones and televisions, raised $573 million through offerings of global depositary receipts.

The company plans to build three plants in an industrial park in southern Taiwan in the next three to five years to meet growing demand for flat-panel displays. Chi Mei's clients include US companies, such as Dell Computer and Hewlett-Packard.

In conjunction with its GDR offerings, Chi Mei set up sponsored GDR programs on the Luxembourg Stock Exchange under Regulation S and in the United States under Rule 144A, JPMorgan Chase announced as depositary.

Rule 144A of the US Securities Act of 1933 applies to private resales of restricted securities to qualified institutions.The securities are not listed on a US exchange or automated inter-dealer system.

Regulation S sets rules governing offers and sales made outside of the US without registration with the US Securities and Exchange Commission.

The GDR offerings raised $503 million for the Regulation S program and $70 million for the Rule 144A program. Each GDR is equivalent to 10 of Chi Mei's common shares.

The offerings, which followed a lengthy road show through Asia, Europe and the US, were heavily oversubscribed. JPMorgan acted as sole bookrunner. Co-managers were BNP Paribas Peregrine and Taiwan-based KGI Securities.

Daiwa Securities, which acted as lead manager of a POWL, or public offer without listing, in Japan, was allocated 12% of the deal.