AIDC releases 54% of shares before August IPO
By Kathryn Chiu, The China Post
July 28, 2014, 12:03 am TWN
TAIPEI, Taiwan -- Preparing for their initial public offering (IPO) in late August, state-owned Aerospace Industrial Development Corp. yesterday announced the release of 54 percent of its total shares at the offering price of NT$12.95 per share.
Aerospace Industrial Development Corp. (AIDC, 漢翔航空) is a state-owned aerospace company of the Ministry of Economic Affairs (MOEA) based in Taichung. It is known for developing the AIDC F-CK-1 Ching-kuo fighter. Concurrently, AIDC's announcement yesterday presaged the largest denationalization of a state-owned enterprises over the last decade on the island.
According to United Evening News, AIDC yesterday finalized its offering price at NT$12.95 per share. A total of 288 million shares will be sold through the primary and secondary market, an act expected to dilute the MOEA's holding to 45 percent. Even so, the MOEA will remain the largest shareholder at AIDC after raising funds of more than NT$4 billion.
More than 99 percent of AIDC's shares are now owned by the MOEA, with the rest held by the National Defense Industry Development Fund, which is managed by the Ministry of National Defense.
Fubon Securities (富邦證券), AIDC's underwriter, told local media that AIDC's shares will be open for auction bidding from July 30 to Aug. 1. The outcome of the auction will be announced on Aug. 7. The IPO will be open to the general public from Aug. 11-13, with the outcome being announced on Aug. 15. AIDC is expected to make its debut on the Taiwan Stock Exchange in late August.
Founded in July 1997, AIDC has capital of NT$9.08 billion and about 3,000 employees. The company produces aircraft engine components — mostly for civilian aircraft, but also for the nation's military.
The U.S.' Boeing Co. and France's Airbus Group NV are both AIDC customers, in addition to Canadian plane and train maker Bombardier Aerospace, the UK auto brand Rolls-Royce and Japan's Mitsubishi Aircraft.
The company saw its sales climb to a record high of NT$23.08 billion last year, up 2.12 percent from