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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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