taiwans-cpt-sells-295-million-of-gdrs

Taiwan's CPT sells $295 million of GDRs

Chunghwa Picture Tubes makes use of new rules that allow a 20% discount on follow-ons, but also require a concurrent sale to existing shareholders. The latter attracts minimal interest and most of the shares are added to the main deal.

TFT-LCD display manufacturer Chunghwa Picture Tubes CPT yesterday became the second Taiwanese company to issue global depositary receipts GDRs under new rules that allow a discount of up to 20% versus the market price, raising $295 million. But while the overall offering went quite well, with institutional investors ordering close to twice the number of GDRs initially available to them, a mandatory concurrent sale to existing investors met with a muted response, suggesting that the new rules may still need tweaking.

The idea of a concurrent offering to existing shareholders, which was introduced by the Taiwan securities regulator at the same time as it widened the maximum discount on follow-on offerings to...

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