Page 39 - 凱基證券 年報

37 資本市場業務 Investment Banking Business
Investment Banking Business
In 2010, the Taiwan government made great strides in
developing Taiwan into an Asia-Pacific financing center, which
will facilitate the country's integration into the global capital
market, and a total of 17 foreign issuers completed initial
public offerings in Taiwan's capital market, either via primary
listing or TDR issuance. Aside from the increasing number
of foreign issuers queuing for IPO or TDR offerings in Taiwan,
domestic IPO and SPO activities have also been strong. The
total deal counts of public equity offerings in Taiwan's capital
market reached 262 in 2010, up 52.3% from the previous
year. Aggregate proceeds raised from these offerings was
NT$140.4 billion, a 35% increase from NT$104 billion in 2009.
Of the total of 262 public equity offerings, 58 were IPO and
TDR transactions amounting to NT$58.4 billion, a 36.1%
increase from NT$42.9 billion the year before; 204 were SPO
transactions amounting to NT$82 billion, up 34.4% from
NT$61 billion in 2009.
The aggregate sum of proceeds raised from KGI-led IPOs,
SPOs and TDR issues reached NT$17.7 billion in 2010, more
than double the level achieved in 2009 of NT$8.4 billion. KGI's
market share climbed to 12.61% last year, second highest
among peers. KGI led 6 out of a total of 46 IPOs in Taiwan
in 2010. Notable IPO transactions were Giga Solar Materials
Corp., Taiwan's leading provider of solar cell conductive
paste. Giga Solar's IPO was one of the highest value listings
in 2010. Another noteworthy deal was Nuvoton Technology
Corp., a leading computer logic chip design company spun-
off from Winbond Electronics Group. As regards TDR issues,
KGI completed a NT$7.85 billion TDR offering for China's
largest integrated IT service provider, Digital China Holdings
Ltd., and won a mandate from Elpida Memory Inc. for a
NT$4.2 billion TDR offering, which was subsequently closed
in February 2011. With respect to SPOs, KGI completed
13 SPO transactions and raised NT$5.3 billion for corporate
clients in 2010. KGI has thus firmly established itself as a
highly professional operator with world-class capability in
structuring and executing complex, cross-border, first-of-a-
kind transactions.
The financial advisory market was particularly buoyant in 2010,
when both domestic and overseas M&A activity was marked
by significantly increased sophistication in deal structure and
execution. In February 2010, KGI acted as financial advisor
to ASE Group, the world's largest independent provider
of semiconductor manufacturing services in assembly and
testing. The ASE deal was a part cash, part stock tender
offer for Universal Scientific Industrial Co., Ltd., a computer
peripherals and network storage manufacturer. KGI also
advised the China-based BOE Technology Group Co., Ltd.
on the acquisition of principal assets and businesses from
Jean Co., Ltd., a computer monitor and TV maker listed on
Taiwan Stock Exchange. This transaction was the largest
inbound M&A transaction ever undertaken by a Chinese
company. Thanks to KGI's strategy and niche market position
in investment banking, its financial advisory business now
occupies a leading position in terms of business scope
amongst domestic securities firms. A current project underway
is the establishment of a cross-strait financial advisory team.
KGI Securities is confident that, once this team is up and
running, the cross-border fund raising business will expand
further.
Since acquiring Taishin Securities in December 2009,
KGI Securities has expanded its corporate client base in
2010. Supported by diversified fundraising planning and an
integrated regional platform, KGI Securities has secured its
leading position in the market and laid the foundations for
further business development. Going forward, KGI will not
only continue to entrench its presence in the tech sector,
but also aggressively promote its capital market expertise
to leading unlisted companies in the medical, biotech and
alternative energy sectors (the latter being the next rising star
industry in Taiwan). In addition, KGI Securities will integrate
its regional resources in Thailand, Shanghai and Hong Kong to
promote Taiwan IPOs and SPOs among overseas enterprises.
This proactive approach, along with in-depth industry analysis
and an unparalleled understanding of capital market and
M&A trends, will allow KGI to access its clients to enormous
growth opportunities. This will in turn increase the value of the
Company's investment banking business.