Innolux to raise NT$20 billion in capital by Sept.
By Kathryn Chiu ,The China Post
June 20, 2014, 12:08 am TWN
TAIPEI, Taiwan -- Innolux Corp. (群創光電) on Thursday said it expects to raise NT$20 billion in cash in working capital and loan payments by the end of September.
Innolux Corp. Chairman and CEO Tuan Hsing-Chien (段行建) revealed the news at the company's annual shareholders' meeting in Miaoli County. Innolux is currently the world's third largest thin film transistor liquid crystal display (TFT LCD) panel maker.
Despite significant improvements in financial strength since 2012, Innolux has had to address the need for technology upgrades and capacity expansion, Tuan said.
Local news media reported that Innolux's letter of intent signed with consortium bank shows that the capital increase project is expected to inject NT$50 billion Taiwan dollars over three years.
As demanded by the project, Innolux has to raise NT$20 billion in cash and global issue. Tuan said that the fundraising effort is underway and is expected to complete by mid-September.
Innolux shareholders yesterday approved NT$0.15 cash dividend payout proposal.
Innolux General Manager Wang Jyh-chau (王志超) said that 4K panel penetration will be beyond expectations and score in the double-digits this year. 4K panels are ultra-high definition display panels with a resolution of 3840 x 2160 pixels.
According to Tuan, Innolux's 4K panel penetration reached 6.8 percent in April, improving on previous expectations of 6 percent, with 1 percent in Jan, 2 percent in February, and 4 percent in March. He also said that 4K panel penetration jumped to 11 percent in the market segment of over-39-inch displays.
Growing demand for 4K televisions will likely benefit Taiwanese suppliers of the chips that control LCD flat-panel displays, according to U.S. brokerage firm Morgan Stanley.
Both AUO and Innolux, also from Taiwan, are forecast to lead global shipments of 4K panels in 2014, accounting for a combined 58 percent share of the global market, according to market intelligence firm NPD DisplaySearch.