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Wednesday 28 October 2009
Oceanus proposes to issue TDRs in Taiwan
Abalone company Oceanus Group has proposed to offer and list Taiwan Depository Receipts (TDRs) representing up to 200 million shares of the company on the Taiwan Stock Exchange (TWSE).
Abalone company Oceanus Group has proposed to offer and list Taiwan Depository Receipts (TDRs) representing up to 200 million shares of the company on the Taiwan Stock Exchange (TWSE).
The move comes hot on the heels of news that more Singapore Exchange-listed companies are considering issuing TDRs to tap funds from what is perceived to be a vibrant retail investor pool in Taiwan.
Oceanus could be the fifth Singapore Exchange-listed company to issue TDRs, after those of Medtec and Eastern Asia Technology and the pending ones of Changtian Plastic and Action Asia.
Oceanus chairman Ng Cher Yew told BT that while there were other options on the table, including a dual listing in Hong Kong or Norway, the group has chosen the TDR route given the lower listing fees in Taiwan, the ease of listing and higher valuations for companies operating in strategic industries in China.
Oceanus is a Singapore-managed company that breeds premium Japanese abalone in China and processes and sells them. It has also ventured downstream into a restaurant chain called Ah Yat Tian Xia. Taiwan is one market that the restaurant chain wants to penetrate.
‘Our product should be well understood by Taiwanese,’ he added. Dr Ng was in Taipei yesterday to hold talks with its appointed adviser and lead underwriter Polaris Securities and other key parties.
The proposed TDRs will also broaden and diversify the shareholder base of the company and promote its corporate image internationally, the group said yesterday.
A TDR is a Taiwan-registered certificate that holds title to a number of shares in a non-Taiwan-based company and is traded on the Taiwan bourse.
Dr Ng said he hopes to price the TDRs within the common range of NT$10 to NT$20 to appeal to retail investors. Each TDR will represent one share.
Of the maximum pool of 200 million shares for the TDR programme, up to 100 million new shares will be issued by Oceanus and up to 100 million shares from investors who had participated in the recent financing exercise undertaken by the group.
Oceanus had recently raised $73.5 million in loans from Ocean Wonder International, Hupomone Capital Partners Singapore and other strategic investors, and issued to them 490 million warrants.
The exercise of these warrants will result in part of the $73.5 million loan being dissolved, allowing the group to save on the interest rate payable on the loan, the group said.
It is now in the process of preparing the necessary documentation for the submission of an application to TWSE and the Taiwan Central Bank for the TDR programme.
After these approvals are obtained, this TDR issue will be subject to approval from the Taiwan Financial Supervisory Commission, the executive branch of Taiwan’s government, and the Securities and Futures Bureau.
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Oceanus proposes to issue TDRs in Taiwan
By LYNETTE KHOO
28 October 2009
Abalone company Oceanus Group has proposed to offer and list Taiwan Depository Receipts (TDRs) representing up to 200 million shares of the company on the Taiwan Stock Exchange (TWSE).
The move comes hot on the heels of news that more Singapore Exchange-listed companies are considering issuing TDRs to tap funds from what is perceived to be a vibrant retail investor pool in Taiwan.
Oceanus could be the fifth Singapore Exchange-listed company to issue TDRs, after those of Medtec and Eastern Asia Technology and the pending ones of Changtian Plastic and Action Asia.
Oceanus chairman Ng Cher Yew told BT that while there were other options on the table, including a dual listing in Hong Kong or Norway, the group has chosen the TDR route given the lower listing fees in Taiwan, the ease of listing and higher valuations for companies operating in strategic industries in China.
Oceanus is a Singapore-managed company that breeds premium Japanese abalone in China and processes and sells them. It has also ventured downstream into a restaurant chain called Ah Yat Tian Xia. Taiwan is one market that the restaurant chain wants to penetrate.
‘Our product should be well understood by Taiwanese,’ he added. Dr Ng was in Taipei yesterday to hold talks with its appointed adviser and lead underwriter Polaris Securities and other key parties.
The proposed TDRs will also broaden and diversify the shareholder base of the company and promote its corporate image internationally, the group said yesterday.
A TDR is a Taiwan-registered certificate that holds title to a number of shares in a non-Taiwan-based company and is traded on the Taiwan bourse.
Dr Ng said he hopes to price the TDRs within the common range of NT$10 to NT$20 to appeal to retail investors. Each TDR will represent one share.
Of the maximum pool of 200 million shares for the TDR programme, up to 100 million new shares will be issued by Oceanus and up to 100 million shares from investors who had participated in the recent financing exercise undertaken by the group.
Oceanus had recently raised $73.5 million in loans from Ocean Wonder International, Hupomone Capital Partners Singapore and other strategic investors, and issued to them 490 million warrants.
The exercise of these warrants will result in part of the $73.5 million loan being dissolved, allowing the group to save on the interest rate payable on the loan, the group said.
It is now in the process of preparing the necessary documentation for the submission of an application to TWSE and the Taiwan Central Bank for the TDR programme.
After these approvals are obtained, this TDR issue will be subject to approval from the Taiwan Financial Supervisory Commission, the executive branch of Taiwan’s government, and the Securities and Futures Bureau.
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