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Paper conglomerate's biotech unit to list on Jan. 17

TAIPEI, Taiwan -- TaiGen Biopharmaceuticals Holdings Ltd., a subsidiary of Taiwan-based conglomerate Yuen Foong Yu Paper Manufacturing Co., is scheduled to launch a primary listing on the local over-the-counter market on Jan. 17, underwriters said yesterday.

According to its prospectus, TaiGen, which was incorporated in the Cayman Islands, is planning to issue 22 million new shares for the listing, with 10 percent of the new shares to be reserved for its employees.

As the issue price has been tentatively set at NT$50 (US$1.67), TaiGen, which is currently capitalized at US$674,270, said the new share sale is expected to raise a total of NT$1.1 billon.

The biotech company said it will use the funds as working capital for new drug development, while it will assign part of the funds to repay its bank loans.

The company expects its debt-to-asset ratio will fall to 19.17 percent in the first quarter of next year from 48.85 percent recorded in the third quarter of this year.

KGI Securities, Yuanta Securities, Capital Securities and Fubon Securities will serve as the underwriters of the new share sale.

Before the upcoming listing, TaiGen had held four rounds of fund-raising to raise about NT$4 billion.

In addition to Yuen Foong Yu, which holds a 35-percent stake in TaiGen, other local legal entities, including the Cabinet's National Development Fund, state-owned Taiwan Sugar Corp. and government-invested China Steel Corp. own a 33-percent stake, while foreign institutional investors have a 5-percent stake.

TaiGen has filed applications in Taiwan and China to sell its oral antibiotics Nemonoxacin, which has a trade name of Taigexyn. It has also licensed Zhejiang Medicine Co. to manufacture and market Taigexyn in China.

Asia accounts for 58.55 percent of TaiGen's total sales, while other regions make up the rest, according to the company.

In the first nine months of this year, TaiGen posted NT$0.42 in loss per share. In 2012, the company incurred NT$0.80 in loss per share, compared with NT$0.14 in earnings per share recorded in 2011.

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