Barry Lam, the founder and chairman of Quanta Computer, has raised $153.3 million from the sale of global depository shares (GDSs) in the Taiwan-based maker of notebook computers, according to sources. The deal launched at around 5.30pm yesterday and closed a few hours later.
Established in 1988, Quanta is the world’s biggest original design manufacturer of notebook computers, according to its website. Its stock, which was listed on the Taiwan Stock Exchange in 1999, has fallen 14% from this year’s peak in early May as global markets tumbled. However, it is up more than 16% since the start of the year, outperforming a 0.9% fall in the Taiwan Stock Exchange Weighted Index during the same period.
The chairman offered 13 million GDSs, which is equivalent to 65 million Taiwan-listed common shares, at a price between $11.46 and $11.79. The price translated into NT$69 to NT$71 per common share, or a 4.2% and 6.9% discount versus yesterday’s close of NT$74.10.
The deal drew strong demand and was more than three times covered, according to a source. Clearly, there was also not much price sensitivity as the price was fixed at the top of the range at $11.79, or at a 4.2% discount versus the close of the common shares.
Notably, two large global long-only orders arrived as the order book was about to close at 8pm, and the source said that 80% of the deal went to the top three investors. In all, about 50 accounts participated in the transaction.
The reason for the share sale, which accounted for 1.7% of the company, is believed to have been to raise money for private investments. Lam will still own about 26.3% after the deal.
Meanwhile, investors saw the opportunity to gain access to a high-quality asset. The fact that it is a high-quality name with a very liquid stock helped attract investors, a second source said.
Citi and J.P. Morgan were joint bookrunners for the deal.
Besides notebook computers, Quanta has extended its businesses into enterprise network systems, home entertainment, mobile communication, automotive electronics and digital home markets, according to its website.
It has established operation centres across Asia, America and Europe to manufacture, configure and service products, as well as to provide logistics support around the world.
