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[2017/10/13]   Chailease Holding Company Limited has Successfully Priced its US$307 million Global Depositary Receipts (GDR) Offering
On 12th October 2017, Chailease Holding Company Limited (TWSE ticker: 5871) (“Chailease”, the “Company”) successfully priced its GDR offering of US$307 million at US$12.28 per unit, equivalent of NT$74.24 per common stock. The deal offered 25 million GDRs, representing 125 million shares of common stock, or c.11.0% of the Company’s issued equity capital. The offering price is 3.5% discount to the 10-trading-day VWAP of the Company. The GDR will be listed on the Luxemburg Stock Exchange. This is Chailease’s second GDR offering and its largest equity capital raise after its successful US$206 million GDR offering in October 2012. Despite the global market volatility, uncertainty around political tensions and macro-economic instability, investors remained very confident about Chailease’s solid performance, impressive growth potential and consistent improvement in asset quality. The Company’s share price has increased by 45%YTD with the broader Taiwan stock market up 16% YTD. The GDR offering was well received by a good mix of long-only and high quality investors globally and was fully subscribed shortly after pricing, with the book ending multiple times covered. This deal also marks the largest GDR offering of Taiwanese financial institutions since 2013. The proceeds from the offering will be used to finance the investment in certain subsidiaries for the Company’s Taiwan, PRC and ASEAN operations and for the repayment of bank loans. With dominant market leadership and more than 40 years of experience in Taiwan, Chailease is also one of the largest wholly foreign-owned leasing companies in the PRC, and has developed strong presence in the ASEAN markets. In the PRC, the Company’s branches have increased from 17 to 37 in the past 5 years covering major industrial and commercial hubs, and its segment profit has increased by 44% to NT$1.7 billion in 1H 2017. Meanwhile, Chailease’s footprint in more than half of the ASEAN countries, including Thailand, Vietnam, Malaysia and Cambodia, provides it with the third largest growth engine after Taiwan and PRC. In 1H 2017, the profit contribution from Taiwan, PRC and Thailand accounted for approximately 55%, 34% and 7% of the total profit respectively. The GDR offering will help the Company to capitalize on the attractive expansion opportunities in all of its major geographic regions and increase its financial flexibility to support future growth. UBS AG, Hong Kong Branch acted as the Sole Global Coordinator, and together with Mizuho Securities Asia Limited acted as Joint Bookrunners of the transaction.
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