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AUO unit plans TWSE listing in mid-July

AUO unit plans TWSE listing in mid-July

Taipei, June 29 (CNA) Daxin Materials Corp., a subsidiary of flat panel maker AU Optronics Corp., said Friday it plans to list on the Taiwan Stock Exchange in mid-July. According to the company's prospectus, Daxin Materials, a provider of advanced chemical materials used in the production of LCD panels, intends to issue 8.698 million new shares to raise funds as working capital. The company, which is currently capitalized at NT$802.34 million (US$26.83 million), said the issue price has been tentatively set at NT$33. At that price, Daxin Materials would raise about NT$287 million from the listing, which will be used toward improving its financial structure, the company indicated. AUO, Taiwan's second largest flat panel supplier, and Eternal Chemical Co. of Taiwan, set up Daxin Materials in 2006. Currently, AUO holds a 21.32 percent stake and Eternal Chemical owns a 29.53 percent stake in the joint venture. Daxin Materials' major products include photo spacers, color resists, alignment layers and photo resist cleaners, which are used by the optoelectronics industry, especially for flat screen production, the company said. In addition to the LCD panel sector, the company said it also provides advanced chemical materials to the touch panel, solar energy and light-emitting diode (LED) sectors, and its customers are mainly in Taiwan, China, Germany, Malaysia and Japan. In 2011, Daxin Materials posted NT$217.10 million in net profit, or NT$2.75 per share, compared with NT$291.46 million in net profit, or NT$4.01 per share, in 2010. In the first quarter of this year, the company had a net profit of NT$55.55 million, or NT$0.69 per share. Daxin Materials has been traded as an emerging stock in Taiwan since May 12, 2011. Under local listing regulations, a company has to be traded as an emerging stock for no less than six months before it decides to list on the main board or on the over-the-counter market. (By Pan Chi-i and Frances Huang)


Updated : 2021-01-17 03:03 GMT+08:00