UTAC
Receives Strong Demand For Initial Public Offer
Singapore, 6 February 2004
Key Highlights
Public offer of 15 million shares is 32.5 times subscribed
Total application monies of S$420 million received for Offer Shares
is largest amount received for a listing so far this year
UTAC's S$182.6 million IPO is largest equity offering since SingPost's
listing
Shares will trade on SGX-ST's Main Board on February 9, 2004
United Test and Assembly Center Ltd ("UTAC"), a leading solutions provider for semiconductor
test and assembly, today announced that it received strong demand
for its Initial Public Offer ("IPO").
UTAC's IPO received overwhelming demand from retail investors.
At the close of the offer at 12 noon on February 5, 2004 , a total
of 25,392 valid applications were received for the shares available
to the public. In total, these subscribers applied for 506,108,000
Offer Shares, with application monies received amounting to approximately
S$420 million. This is the largest amount of application monies
for Offer Shares received for a listing so far this year. The public
offer was 32.5 times subscribed.
Meanwhile, strong take-up from institutional investors accounted
for about 78% of the total offering size. Within this group of
institutional investors, 72% are from international funds including
those based in Singapore , Hong Kong and Europe , while 28% are
from domestic funds.
Based on the total invitation size of 220 million shares and the
total valid applications amounting to 710,523,000 shares, the IPO
is approximately 3.2 times subscribed.
Commenting on the demand, Mr Lee Joon Chung, President & CEO
of UTAC said: "We are very pleased with the excellent response
from both the institutional and retail investors. This is a vote
of confidence in UTAC. The success of our IPO and the fresh funds
raised will enable us to further build on our strengths and embark
on our next phase of rapid growth."
In connection with its listing on the Main Board of the Singapore
Exchange Securities Trading Limited ("SGX-ST"), UTAC
offered 220 million New Shares at S$0.83 each, with a 15% Over-Allotment
Option of up to 33 million Additional Shares. The Invitation comprised
15 million Offer Shares by way of public offer and 205 million
Placement Shares (subject to the Over-Allotment Option).
UTAC's plans to raise estimated gross proceeds of S$182.6 million
from its IPO and this will be the largest issue on the local bourse
so far this year as well as the largest equity offering since Singapore
Post Limited's listing last year.
The estimated net proceeds of S$175.5 million raised from UTAC's
IPO will be used as follows:approximately S$87.0 million to partially
finance capital expenditure requirements; and the balance
of approximately S$88.5 million for general working capital requirements
and investments and/or acquisitions as and when such opportunities
arise.
For the six months ended June 30, 2003 ("1H2003"), UTAC
registered a turnover of US$49.95 million, an increase of 39% from
the previous corresponding period. UTAC narrowed its losses to
US$10.4 million in 1H2003, from a loss of US$13.9 million in the
same period a year ago.
For the three months ended September 30, 2003 ("3Q2003"),
it is estimated that the Group would achieve a revenue of US$30.4
million. For the three months ended December 31, 2003 ("4Q2003"),
the Group expects to achieve revenue of US$34.9 million. As a result,
the Group expects to achieve a profit before tax of US$0.5 million
and US$2.2 million respectively for 3Q2003 and 4Q2003.
DBS Bank is the Lead Manager, Lead Underwriter, Lead Placement
Agent and Sole Bookrunner for UTAC's IPO. CLSA is the Co-Underwriter
and Co-Placement Agent for the IPO.
Trading of the shares is expected to commence at 9.00 am on February
9, 2004 .
About United Test and Assembly Centre Ltd
Established
in 1997, UTAC has carved out a name for itself as a leading independent
provider of semiconductor assembly and testing services to its
customers, which comprise Integrated Device Manufacturers ("IDMs"),
fabless companies and wafer foundries such as Broadcom, Infineon,
Nanya, Silterra, Chartered Semiconductor Manufacturing, ST Microelectronics
and UMCI.
UTAC provides wafer probing and final testing services on a diverse
selection of test platforms for a range of semiconductors including
memory, logic, mixed-signal and radio-frequency ICs. Besides testing
services, UTAC also provides assembly services for a broad range
of leadframe and array packages.
Headquartered in Singapore where it houses its manufacturing, test
engineering and package design facilities, UTAC has also established
a global network of sales offices in the United States , Italy
and Japan and has appointed a sales agent in Israel . It
has also incorporated a wholly-owned subsidiary in the PRC to provide
wafer probing and testing services.
Issued on behalf of United Test and Assembly Center Ltd
by
Citigate Dewe Rogerson, i.MAGE Pte Ltd
55 Market Street
#11-01 / 03 Sinsov Building
Singapore 048941
Contact:
Ms Christina Martinsson
/ Ms
Karen Lew
During office hours: 6534 5122
After office hours: 9170 2384 / 9781 3267 (Mobile)
Email: christina.martinsson@citigatedrimage.com or karen.lew@citigatedrimage.com
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