ProMos encounters tough audience

The Taiwanese DRAM manufacturer has to offer a wide discount to clear its debut GDR.

Under the lead management of Goldman Sachs, ProMos Technologies priced a 300 million new share offering last Friday at a 20% discount to a spot close of NT$21, raising proceeds of $146 million.

The deal was said to have closed marginally oversubscribed, with a fairly even distribution split between the three regions and a book that comprised virtually all new investors to the company. However, no-one doubts that the transaction was an extremely difficult one and many might wonder why the company proceeded at all when the stock price is off 53% from its NT$41.7 February high and trading on a price to book value of only 1.7 times 2002 earnings....

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