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ChipMOS TECHNOLOGIES (Bermuda) LTD. Message Board

  • lizheng19672002 lizheng19672002 Feb 25, 2013 2:23 PM Flag

    84% vs.

    Since the old thread contains so many messages. I think to better put my question with a new topic to have better chance to be answered by informative longs.

    My question is how to achieve this?(sell more shares?). below 70% means we get price 30% below the IPO price? seem more discount than 86% that we expected. I am confused. Could someone kindly explain that? Thanks

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    • You've misunderstood something.

      Chipmos Bermuda currently owns around 84% of Chipmos Taiwan. Towards the end of the year it will be selling a portion of that ownership on the Taiwanese market and be under 70% ownership of Chipmos Taiwan. At the same time, Chipmos Bermuda will be buying back some shares of Chipmos Bermuda that Thailin owns. After that point, Chipmos Bermuda will no longer exist. There will just be Chipmos Taiwan, and our shares will turn into ADRs that own shares of Chipmos Taiwan. After that, Chipmos will then merge with Thailin, which it already owns 42% of.

      That IPO price will happen towards the end of the year. Much sooner, in the next month or two, Chipmos will sell less than 1% of the company on a lesser exchange in order to be eligible to do the listing on the main Taiwanese exchange. The only "discount" will be that they will decide what price is a reasonable price for the company, and then offer the shares at a discount to that. However, that price will be substantially higher than the current price we have now.
      On a separate issue, for those who have trouble reviewing their message before posting, if you click in the text area and move your up and down arrow keys you can still read your message. However, I don't know how Yahoo keeps going from one bad design to another.

      Sentiment: Strong Buy

    • Not sure what you mean that we expected 86% discount of what?

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