Johannesburg, 10 Jun 2002
Mustek has released details of its proposed listing of depository receipts for trade on the Taiwanese Stock Exchange.
As reported on ITWeb on 30 May, the IT distributor will place depository receipts with custodial banks in Taiwan, enabling Taiwanese investors to dabble in the stocks in their local currency.
Mustek today announced that it would issue 20 million Mustek shares for cash at an issue price of no less than 450c per share.
Should the Taiwanese Depository Receipt (TDR) transaction proceed, Mustek shareholders will have the option to sell up to 10% of their Mustek shares to the company at the TDR listing price by way of pro-rata buy-back.
According to Mustek management, the Taiwanese Stock Exchange is characterised by "highly tradable shares and many technology listings, some of which are the largest PC component and PC-related companies in the world".
The company believes the TDR transaction will strengthen its relationships with key Taiwanese suppliers, provide a mechanism for raising capital in international markets and increase its brand awareness.
Mustek also hopes to improve its market rating, saying the Taiwanese-listed companies of similar persuasion trade at a significantly higher multiple to locally-listed distributors.
The Mustek share moved up almost 5% or 16c on its 329c opening, swapping hands at 345c just before noon today.
Correction: ITWeb previously reported incorrectly that the worth of Mustek`s Taiwanese depository receipt listing would be R900 million. The correct amount is, as amended, in fact R90 million. ITWeb regrets the error.
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