Taiwan's enterprises account for 87% of total ADRs issued this year

Dec 19, 2003 Ι Industry In-Focus Ι Furniture Ι By Judy, CENS
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Taipei, Dec. 19, 2003 (CENS)--Total floating value of American Depository Receipts (ADRs) for the year posts an annual growth of 32% to reach US$9.3 billion, with US$8.09 billion or 87% of which issued by Taiwanese enterprises, according to statistics compiled by the Citibank.

Citibank statistics indicated that up to 99% of the ADRs were issued after April of the year, and Taiwan's high-tech manufacturers were major issuers. From July to November, Taiwan Semiconductor Mfg. Co. (TSMC) issued US$1.99 billion worth of ADRs, the highest among Taiwan's issuers. Chunghwa Telecom Co. followed with US$1.58 billion and China Steel Corp. US$1.08 billion. Other hi-tech firms that also issued large volume of ADRs during the period included Chi Mei Optoelectronics Corp., Quanta Computer Inc., and HannStar Display Corp.

Insiders indicated that in addition to better economic performance, the government here largely released its stakes in listed firms was another reason for the booming issuance of ADRs by Taiwan's manufacturers this year. They believed that issuing ADRs would remained the favorite tool for Taiwan manufacturers to raise funds next year, as interest rates are expected to drop next year, causing corporate convertible bonds to lose its attraction for makers.

With growing economic recovery around the world, more and more international companies are trying to raise funds via ADRs. Compared to last year, Citibank pointed out, the transaction volume of ADRs rose this year by 12.9% to 31.9 trillion shares and the trading value surged 11% to US$61.9 billion.
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