Taiwanese flat-screen manufacturer HannStar Display raised US$250 million from a convertible bond issue, after a $25 million greenshoe option was exercised in full, one of the lead managers said yesterday. This came after the offer saw demand of US$3 billion and the original size was increased to $225 million from $175 million ahead of the launch earlier this week, said Simon Aird, head of Asian equity syndicate at Credit Suisse First Boston. The company will use the proceeds to buy machinery for a new fifth-generation manufacturing plant which is scheduled to start commercial production in the first quarter of next year. The conversion rate for the zero coupon five-year bonds was set at NT$17.16 (HK$3.92) per share, representing a 20 per cent premium to HannStar's close on October 6. The bonds are convertible into HannStar common shares or global depositary receipts. The bond holders have an option to sell the bonds back at par on October 14, 2005 and on the same date in 2006. The terms were much better than a similar US$150 million convertible bond launched by the company in February, which was priced at just a 10 per cent conversion premium. The company also raised $175 million from its first ever sale of global depositary receipts in July. HannStar shares gained 2.75 per cent to $14.90 yesterday and are up 44 per cent this year, compared with a 31 per cent gain in Taiwan's Weighted Index. On Wednesday, the company reported a 32 per cent increase in revenue to NT$2.9 billion last month, indicating a steady improvement. In the first nine months revenues were still lagging year-earlier figures by 4.6 per cent. Last year, the company had a global market share of 5.9 per cent, according to DisplaySearch. ING Bank and Credit Suisse First Boston were joint bookrunners for the offer.