Taiwanese DRAM manufacturers return to GDR market

Powerchip and ProMos Technologies prepare to launch GDR offerings to fund construction of 12 inch fabs.

Taiwan's second largest pure DRAM manufacturer Powerchip will come first with roadshows for a 350 million new share offering scheduled to start early to mid next week, for pricing about 10 days later.

Deutsche Bank is sole lead manager of the deal which should raise $254 million based on Thursday's closing share price of NT$25.4. One GDS unit equals 10 shares. Despite the fact that prices of benchmark 128Mbit DRAM prices have quadrupled since November, the stock itself is still said to hold value since it is trading on a current price to book valuation of 2.3 times forward earnings against a 5.4 times peak for the sector during the last DRAM cycle.

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