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Hon Hai's touch panel unit to launch primary listing in June

Hon Hai's touch panel unit to launch primary listing in June

Taipei, May 30 (CNA) General Interface Solution (GIS) Holding Ltd., an overseas-registered subsidiary of Hon Hai Precision Industry Co. (??), is scheduled to launch a primary listing on the Taiwan Stock Exchange (TWSE) in June, market sources said Saturday. GIS, which was incorporated in the Cayman Islands in January 2011 and is now capitalized at NT$2.86 billion (US$92.86 million), is planning to issue 23.53 million new shares for the listing. According to a prospectus filed by GIS with the TWSE, the issue price has been tentatively set at NT$80, which will raise about NT$1.88 billion from the listing. The touch panel maker will use the proceeds as working capital and to repay its debts. The expected increase in working capital is aimed at expanding its production capacity for GIS, which currently runs factories in China's Chengdu, Zhengzhou and Shenzhen and Taiwan's Miaoli. After it repays some of its bank loans, GIS said that its interest payments for 2015 are expected to be cut by about NT$20.5 million. Hon Hai, the world's largest contract electronics maker, assembling iPhones and iPads for Apple Inc., currently holds a 27 percent stake in GIS, while flat panel maker Innolux Corp. (??), another unit of Hon Hai, owns 14 percent. Market analysts said that due to the ties with Hon Hai, GIS has secured large orders from Apple. In the first quarter, the U.S. market accounted for 70 percent of GIS's total sales to become the largest buyer of the company, followed by China with 14 percent and Taiwan with 11 percent, according to the company's prospectus. In the January-March period, touch panels for tablet computers made up 78 percent of GIS's total revenue, while touch displays for smartphone use represented 19 percent of the total sales, the prospectus added. Analysts said that GIS has become a threat to another Taiwanese touch panel supplier, TPK Holding Co. (??). In 2014, GIS posted NT$1.34 billion in net profit, down 42 percent from a year earlier, with earnings per share (EPS) of NT$4.75, compared with NT$13.57 in EPS a year earlier, due to a supply glut in the global market and fierce price competition. In the first quarter of this year, GIS's net profit stood at NT$37 million, with EPS of NT$0.13. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-22 11:34 GMT+08:00