Lion Travel to go public on TWSE's listing this month
CNATAIPEI -- Lion Travel Co., one of Taiwan's leading travel agencies, is scheduled to launch a listing on the Taiwan Stock Exchange on Sept. 24 to raise more than NT$600 million (US$20.05) for future business expansion, underwriter Fubon Securities said Tuesday.
September 4, 2013, 6:42 pm TWN
The travel agency is planning to issue 8.95 million new shares for the listing and reserve 10 percent for its employees, Fubon Securities said.
The issue price has been tentatively set at NT$70 and the share sale is expected to raise NT$626.5 million as working capital, according to the underwriter.
The underwriting process is scheduled to start Sept. 6, and the issue price is expected to be finalized Sept. 14 based on how the share sale is received in the market, Fubon Securities said.
Currently capitalized at NT$610.5 million, Lion Travel will be the third local travel agency to list its shares on the local market.
Phoenix Tours International, Inc. launched its listing on the main board in October 2011, while Star Travel Corp. started trading on the over-the-counter market in February 2012.
Lion Travel said it has been putting great effort into its online operations to gain more business, while maintaining its physical offices at home and abroad.
In addition to its offices in Taiwan, Lion Travel has about 70 agencies worldwide in countries such as the U.S., Canada, Hong Kong, New Zealand, Australia, Thailand, Japan and China.
In the first six months of the year, Lion Travel averaged 70,000 independent travelers per month and 2,700 tour groups with a total of 40,000 people.
In 2012, Lion Travel posted NT$136 million in net profit or NT$2.35 in earnings per share (EPS), up from NT$89 million in net profit or NT$2.1 in EPS recoded a year earlier. In the first half of this year, its net profit stood at NT$162 million or NT$2.65 in EPS.
The travel agency said its gross margin in recent years has been between 14 percent and 16 percent.