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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

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  • davegras davegras Nov 29, 2012 5:53 AM Flag

    IPO - part 1

    Here's an example of how I'm viewing this. Suppose you have 10K shares of IMOS. ChipMos Taiwan (including the contribution from Thailin) is expected to earn $3/share next year or $90M. That equals TW$2.61B. Because there are 842 million shares out, EPS is TW$3.10/share. The underwriters decide ChipMos Taiwan deserves a multiple similar to Chipbond which trades at about 14x trailing earnings, but they discount it 20% which equals 11.2x. Multiply that by $3.10share and the IPO goes off at about TW$35/share. 15% of our shares are sold to the public but to make is simple the price stays at the IPO price. So on day one, that 10K IMOS portfolio is worth $285K(23.6 x 10K x TW$35 / 29 (exchange rate), or $28.5/share if you reverse it back to IMOS.

    But what about Thailin? Will the share count increase when they're folded in? If so, then you should adjust the IPO price further, maybe by 15%, along with the metrics. The IPO maybe goes off at $24/share.

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