Chinapost.com
TAIPEI, Taiwan — Fubon Financial Holding yesterday raises US$850 million from global depositary receipts (GDRs) in Luxemburg, however its shares plummeted over 5 percent after the company priced the GDRs at a more than 6-percent discount.
In a statement, the island’s largest financial service company yesterday said it will issue a total 69.84 million GDRs at a price of US$12.17 per unit, equal to NT$36.51 per common share. The price represents a 6.5-percent discount on the stock’s closing price on Tuesday.
Local media quoted sources as saying that the Fubon transaction appeared somewhat ambitious from the start and that demand did fall short, suggesting that J.P. Morgan, as the sole bookrunner, was left holding a portion of the deal.
However, Fubon will use the proceeds to fund its 5.65-billion-yuan acquisition of an 80-percent stake in China’s First Sino Bank that was announced in December last year. The deal, which marks the first acquisition by a Taiwan lender of a China-based bank, is still awaiting regulatory approval.