Sheng Xin's SiC Plant, Part of Radiant Group, Plans for Capital Increase
Table of Contents
You might want to know
- What strategic advantages come with Sheng Xin's capital increase plan?
- How will this move impact the company's market position by 2025?
Main Topic
Sheng Xin Materials Co., Ltd., a key player in the silicon carbide (SiC) industry, has announced plans to raise funds through a cash capital increase. The plan, a collaborative effort involving Radiant Group (6125-TW) and TaiChi (4934-TW), proposes to issue 20,000 new shares at a premium price of 25 TWD each. The capital increase, now approved by the Financial Supervisory Commission, aims to generate 500 million TWD. Shareholders will observe the ex-rights trade commencing on the 9th, aligning with Sheng Xin's strategic timelines.
Sheng Xin, a joint venture between TaiChi holding a 47.7% stake and Radiant holding 8.8%, also counts Foxconn (Hon Hai Precision Industry, 2317-TW) with approximately 10% among its major stakeholders. The collaboration extends to strategic partners, including Epistar (2455-TW). As Sheng Xin progresses with its capital increase, its registered capital is expected to grow to 700 million TWD. Furthermore, the company aims for a public listing under the technology sector to enhance its market visibility.
Operating with a current capital of 500 million TWD, Sheng Xin possesses manufacturing capabilities for both N-type (conductive) and semi-insulating SiC substrates, positioning it uniquely within the component-grade substrate market. Despite reporting a revenue of 9.74 million TWD and a post-tax loss of 123 million TWD in the first half of 2024, with losses per share at 2.47 TWD, the company remains focused on its growth trajectory and impending public filing by the second quarter of 2025.
This capital increase presents a strategic opportunity to bolster Sheng Xin's financial standing and market reach ahead of its planned 2025 public listing.
Key Insights Table
| Aspect | Description |
|---|---|
| Capital Increase | Issuing 20,000 shares at 25 TWD each to raise 500 million TWD. |
| Strategic Partners | Includes TaiChi, Radiant, and Foxconn with stake and partnership engagements. |
Afterwards...
The drive to enhance Sheng Xin's capital reserve is poised to strengthen its market position, complementing the current technological advances shaping the SiC industry. As interest in SiC technology grows, propelled by advancements in power electronics and telecommunications, Sheng Xin stands at the forefront of innovation within its niche. Looking ahead, the company aims to capitalize on these trends by further exploring market openings and potential collaborations. This proactive approach facilitates adaptability and sustained growth in the evolving global market landscape.