Focus Stock: For采 Surges on Capital Reduction and Share-Exchange Plan

For采’s shares briefly touched the daily price limit after investors responded to the company’s cash capital reduction and upcoming share exchange. The LED maker reported improved fundamentals in the second quarter, earning NT$1.69 per share after turning from a loss to a profit.

The stock reached NT$68.2 in early trading before easing to NT$64.2 at 9:58 a.m., a gain of 3.55 percent. Trading volume stood at 30,872 lots at that time.

Shareholders approved the cash capital reduction at the company’s annual meeting on May 26. The Taiwan Stock Exchange approved the filing on Aug. 31, and For采 set Sept. 3 as the capital reduction base date.

The company has about 738 million issued shares, including 70 million privately placed shares, and paid-in capital of about NT$7.379 billion. The reduction ratio is about 45.8 percent, with roughly 338 million shares expected to be canceled. Paid-in capital will fall to NT$4 billion after the reduction.

The final trading day for the existing shares will be Nov. 4. Trading will halt from Nov. 5 through Nov. 13, which will serve as the base date for issuing replacement shares. Trading in the new shares is expected to resume on Nov. 16, when the old shares will also be delisted. Based on the shareholder register on the exchange date, every 1,000 shares will be converted into about 542 shares, with a cash refund of approximately NT$4,579. The refund is expected to be distributed on Nov. 16.