Etron to issue shares and convertible bonds

TAIPEI: Etron Technology has revealed plans to expand its capital through issuing new shares and unsecured convertible bonds; it is also known for supplies of niche memory chips used in LCD TVs, mobile phones and other consumer products.

Etron expects to raise approximately NT$250 million (US$7.9 million) through a rights issue, based on a tentative per-share price of about NT$20. It did not reveal an anticipated amount that will be raised from the bond issue.

Etron listed revenues of NT$903 million for the month of April 2010, up 16.8% on month. Accumulated revenues throughout the month totaled about NT$3.2 billion, an 83.8% rise from the year 2009.

Industry watchers anticipate Etron's gross margin for the second quarter to grow up from 18.25 per cent generated in the first, thanks to more steady foundry costs.