Thailin opened down a bit, but closed higher again - highest in almost 2 years. Could be business is really taking off and/or investors understand the very positive implications of the IMOS listing. I for one expect 8150 to trade up a lot.
Also, nice ChipMOS listing article in today's Digitimes.
Memory, I think you're right and IMOS should follow. If the IPO is priced at $NT20 and no shares trade at least we know the price of IMOS should be at least $14 or around 2/3. The math is easy because the exchange rate is close to the shares outstanding. However, ChipMos Bermuda will eventually have $3 in cash for buybacks or a dividend so it really should trade around $17. For simplicity I'm using 80% of IMOST as the target price for IMOS. If IMOST quickly moves up to $NT25 I believe IMOS should be $20.
For the most part IMOS has been a "show me" stock and while I feel the arbitrage opportunity still remains huge, I suppose investors want to see how the IPO and subseqent trading comes off.
The dollar value of entire float they are releasing this Friday is so small, that a single retail investor could buy it all. I can't see how with such a small float that it doesn't trade up.
Right now the IPO unknown is more like an anchor holding the stock down. This is almost like Silmarilion worrying about the price of 300 shares trading after hours. This IPO is going to have huge price swings with such a small float.
ChipMOS subsidiary approved for listing on Taiwan stock market
Jessie Shen, DIGITIMES, Taipei [Tuesday 16 April 2013]
The Taiwan Stock Exchange (TSE) has approved the listing application of ChipMOS Taiwan, a subsidiary of semiconductor assembly and test services provider ChipMOS Technologies.
ChipMOS Taiwan is expected to start trading on the Taiwan Emerging Stock Board on April 19, under the ticker symbol: 8150, its parent company revealed.
ChipMOS is a Nasdaq listed company with its major operations based in Taiwan. ChipMOS has its expertise in the field of memory and LCD driver IC packaging and testing, with customers including fabless and IDM companies.
ChipMOS already unveiled plans to focus 2013 capex on expanding backend manufacturing capacity for small-size panel driver ICs. The firm set aside NT$2.2-2.5 billion (US$75.5-85.8 million) for its 2013 capex budget.
In addition, market watchers observed that ChipMOS will benefit from a ramp-up in orders from one of its memory clients, Micron Technology, which is expected to close its Elpida Memory acquisition in the first half of 2013.