DISCOUNT: With the company setting its subscription price at NT$14 — 29 percent lower than Wednesday’s closing price — investors dumped its shares yesterday

Taipei Times
Date: Dec 23, 2017
By: Lisa Wang  /  Staff reporter

Tatung Co’s (大同) share price plunged 9.92 percent yesterday, as investors reacted negatively to its plan to raise fresh funds.

The home appliance supplier plans to raise NT$7 billion (US$233.58 million) by issuing 500 million new common shares to repay bank loans, improve its financial structure and replenish its operating capital, the company said in a statement released on Thursday night.

The company set its subscription price at NT$14 per share — a 29 percent discount to its closing price of NT$19.65 on Wednesday.

That spurred a wave of selling yesterday, with the stock nosediving to close at NT$17.7 in Taipei trading, snapping a three-session winning streak.

Shares of Tatung have jumped 105.97 percent to date this year, outperforming the broader market’s 13.35 percent increase over the sameperiod, Taiwan Stock Exchange data showed.    [FULL  STORY]