Taiwan Surface Mounting Technology Corp, the largest printed circuitboard (PCB) assembler in Taiwan, plans to raise as much as HK$700 million by spinning off its unit for a Hong Kong listing next month, sources said.
The company would raise about HK$500 million to HK$700 million to expand its mainland operations into cities such as Xiamen in Fujian province.
It planned to increase the number of its production lines to 110 this year from 90 at present, boosting output capacity by 20 per cent, said the source.
Taiwan Surface has 76 production lines located in Dongguan, Suzhou, Nanjing, Ningbo, Xiamen and Fushan city. The rest are based in Taiwan.
An overseas initial public offering could enable Taiwan Surface to meet a requirement on the island that investment by any local firm cannot exceed 40 per cent of its asset value, a level it almost reached, the company's chairman Wu Yun Kai said in January.
Taiwan Surface, listed in Taiwan since 2004, has mandated TSC Capital and Mega Capital as joint sponsors of the listing of its mainland unit, Regent Manner International Holdings.