Foreign-Registered Lu Hai Apply For TWSE Listing
News: China-based Tire manufacturer Lu Hai Holding has applied to be listed on the Taiwan Stock Exchange (TWSE), China Post reports. Lu Hai is registered in the Cayman Islands and would be the seventh foreign-registered company to ask for a primary listing on the main board in 2013. The supplier plans to issue 7.514mn new shares for the listing and aims to reserve 10% of those for its employees. Expected to be completed in Q413, the firm believes it will raise US$6.34mn from the new share sale and those funds will be used as working capital for future expansion.
BMI View: April auto sales figures from the Taiwan Transportation Vehicle Manufacturers Association (TTVMA) came at 17,382 units, down 3.3% year-on-year (y-o-y). Vehicle sales for the first four months of 2013 were 89,533 units, down 10% y-o-y. The poor start to 2013 has caused us to downgrade our sales growth forecast for this year to 2.7%, to 277,000 units, from 7.3% previously.