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IC packaging, testing firm seeks primary listing on TWSE

IC packaging, testing firm seeks primary listing on TWSE

Taipei, Oct. 10 (CNA) GEM Services Inc. (??), a Cayman Island incorporated integrated circuit packaging and testing services provider, is seeking a primary listing in Taiwan, the Taiwan Stock Exchange (TWSE) said Saturday. The TWSE said GEM is the eighth foreign-registered company to file an application for a listing on the exchange. While GEM is a Cayman Island incorporated firm, its chairman, Cheng Chu-liang (???), and president, Tang Yen-chiang (???), are Taiwanese nationals. According to a prospectus GEM filed with the exchange, the company is planning to issue 12.548 million new shares in the listing and hopes to raise about NT$451.73 million (US$13.73 million) based on a tentatively set issue price of NT$36. GEM said it expects the fundraising activity will be completed by the end of the first quarter of next year, with the funds expected to be used to help finance future expansion and to repay debt to improve its financial structure. According to the company, its debt to asset ratio as of the end of June stood at 29.52 percent, down from 34.61 percent seen at the end of 2014. Yuanta Securities (????) and E. Sun Securities (????) are serving as the underwriters of GEM's listing. GEM currently operates production lines in Kaohsiung in Taiwan and Shanghai and Hefei (??) in China, and its customers include IC designers and integrated device manufactures from the United States, Japan and Taiwan. These clients use their chips in a wide range of devices such as motherboards, notebook computers, servers and power supply devices, GEM said. The IC designer has devoted considerable resources to research and development to upgrade its technology and eventually boost profitability, it said, and its gross margin improved to 27.26 percent in 2014 from 21.02 percent in 2013. Last year, GEM posted NT$5.15 in earnings per share, up from NT$2.45 in EPS a year earlier. In the first half of 2015, the IC designer's EPS stood at NT$2.33, but it did not provide a comparison with the same period of last year. (By Tien Yu-pin and Frances Huang)


Updated : 2021-09-26 15:32 GMT+08:00