Integrated Memory Logic, a Silicon Valley chipmaker, will today begin trading as the Taiwan Stock Exchange’s first foreign initial public offering.
IML, which designs chips that control the flow of electrical power inside large flat-screen televisions, raised T$1.4bn ($44m) through the offering after pricing shares at T$143, in the middle of the range, over the weekend.
Yong E Park, chairman and chief executive of IML, said it had considered listing on Nasdaq, the Tokyo Stock Exchange and the Hong Kong Stock Exchange, but opted for Taiwan because it was more suitable for a small to medium sized company.
He said Taiwan offered cheaper listing costs, high liquidity and reasonable regulations. Listing there also brings IML closer to its Taiwanese clients – panel makers such as AU Optronics and Chimei Innolux.
The listing is a victory for Chi Shive, chairman of the Taiwan Stock Exchange. Mr Shive, like many of his regional competitors, has tried hard in the past year to attract foreign listings.
While there have been a number of Taiwan depository receipts listings, mostly for Taiwanese companies abroad, this is a milestone for the Taiwan Stock Exchange because it is the first true foreign IPO.
Mr Shive said last week that he was aiming for 77 new listings this year compared to 36 last year. These will be split between IPOs and depository receipt listings, he told Singapore’s Business Times while promoting Taiwan depository receipts in the city-state.
Some 56 offshore companies are set for an IPO in Taiwan, having hired underwriters. Four have formally submitted applications to the exchange, said Mr Shive, who also aims to double the number of TDR listings this year to 20.
Investor enthusiasm for the IML offering was overwhelming, with the listing subscribed 63 times. This triggered an over-allotment option that increased the offering by 1.1m shares.
Yuanta Securities was the underwriter for the listing.
Additional reporting by Chen Yu-ting in Taipei
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