Z-Obee launches proposed Taiwan Depository Receipts listing

The company offers 80mln units of TDR at between NT$10 and NT$12 per unit to raise gross proceeds of up to NT$960mln.

Z-Obee Holdings Limited (“Z-Obee”), a one-stop portable communication product and solution provider in the PRC, on Friday announced the details of its proposed listing of Taiwan Depository Receipts (“Proposed TDR Listing’) on the Taiwan Stock Exchange.

The proposed listing will comprise 80 million units of TDR, representing 40 million New Shares to be allotted and issued by the Company and 40 million existing Shares to be transferred by certain existing shareholders of the Group and Mr Lu Shangmin, Executive Director of Z-Obee, to Chinatrust Commercial Bank, according to a Z-Obee report.

Of the 80 million units of TDR to be issued, approximately 85% (equivalent to 68,399,000 units) will be offered to selected institutional and individual investors in Taiwan through a book building exercise; 9.5% (equivalent to 7,600,000 units) will be offered to the public in Taiwan; 5% (equivalent to 4,000,000 units) will be offered to the Underwriter, Polaris Securities Co., Ltd and the remaining 1,000 units will be offered to the Taiwan Securities and Futures Investors Protection Centre. The aggregate of 80 million Shares represents approximately 12.59% of the enlarged issued share capital of the Group following the issue of the 40 million New Shares upon completion of the Proposed TDR Listing.

The indicative price range is between NT$10 (approximately HK$2.57) and NT$12 (approximately HK$3.08) per share. The total gross proceeds are estimated at between approximately NT$800 million (approximately HK$205 million) and NT$960 million (approximately HK$246 million), whereas the final net proceeds from the issue of the New Shares are to be used as the working capital of the Group.

The book building exercise is to be carried out between 22 and 25 November 2010. The final Offer Price is to be determined on 26 November 2010. Dealing in TDRs of Z-Obee is expected to commence on the Taiwan Stock Exchange on 3 December 2010.

Mr Wang Shih Zen, Chairman and CEO of Z-Obee said, “We believe that the Proposed TDR Listing will provide an attractive alternative for international investors, particularly potential investors in Taiwan, to invest and deal in the securities of Z-Obee. This, in turn, will further increase the liquidity of the Shares and broaden the shareholder base of the Group. In addition, it will enhance our competitiveness in Taiwan and be beneficial to our business development in the region.”

The Group will apply to the Hong Kong Stock Exchange for the listing of, and permission to deal in, the New Shares on the Hong Kong Stock Exchange as soon as practicable.