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StockmarketMonday, 12/04/2006, 04:51

Taicera IPO set for green light

Taiwanese-owned granite tile and ceramic producer Taicera will sell five million shares in November in a move to prepare for listing on Vietnam’s stock market<br>
Taicera IPO set for green light

Taicera IPO set for green light

Taiwanese-owned granite tile and ceramic producer Taicera will sell five million shares in November in a move to prepare for listing on Vietnam�s stock market.

The shares, which equal 16.67 per cent of its more than 30 million shares in total, will be sold to the public, strategic investors and employees, a source from Saigon Securities Company (SSI), the consultant for the Dong Nai province-based company, said last week.

More than 3.9 million shares will be sold to the public via auction with the floor price of VND25,000 ($1.56) per share, with 600,100 shares to strategic investors via private placement at VND25,000 each and the remainder to its employees at discount of 30 per cent on the reference auction price.

�The IPO plan is now under final stage of consideration by the State Securities Commission and we plan to launch the issuance in November,� said Phung Thi Tan Thanh, a financial analyst from SSI, who is in charge of Taicera�s listing.

The Dong Nai province-based Taicera will be the fifth foreign-invested enterprise to float its shares on the Ho Chi Minh City bourse after Taiwanese-invested firms Taya, Chang Yih, Full Power and Malaysia�s Interfood.

Local and foreign investors are entitled to register for the share auction, she added.

Taicera CEO Chen Cheng Jen said the issuance would enable Taicera to gain access to the capital market to raise funds for future expansion, and rationalise Taicera�s equity structure in order to obtain listing on the Ho Chi Minh City Securities Trading Centre in accordance with the existing law and regulations of the government.

If the issuance is successful, Taicera�s chartered capital is expected to increase to more than VND300 billion ($18.75 million) from the current VND250bn ($15.62m). Proceeds from issuing shares will be used to repay for bank loan and to increase the working capital related to its investment plan on two new production lines in Dong Nai province�s Go Dau Industrial Park.

Chen said he was looking to mobilise more capital and list on the stock market.

�We want to complete it as soon as possible so that it can trade its shares on the stock exchange,� he said.

Total expected listing volume is five million shares, accounting for 16.67 per cent of Taicera�s chartered capital in compliance with the existing regulation on listing foreign-invested enterprises in which shareholding FIEs will only be able to list shares they sell through an IPO.

To increase the liquidity for the shares, Taicera has planned to dispose shares held by founding shareholders after completion of IPO, but specific volume and disposal date remain undisclosed.

Taicera is a 100 per cent foreign-owned company initially established by 20 founding Taiwanese investors in 1994. It was one of the first six FIEs approved by the Ministry of Planning and Investment to convert into shareholding status.

Over the past decade of operations, Taicera has increased its total investment capital more than three times, from $19.5m in 1994 to over $66.1m last year.

Taicera has exported its products to 17 countries over the world, with Taiwan, Australia, Japan, Singapore, India and Korea being major ones and export revenue making up over 60 per cent of the total earnings.


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