Taipei, April 25 (CNA) Shares of Rotam Global AgroSciences Ltd., a Hong Kong-headquartered agrochemical manufacturer, rose sharply on its first day of trading on the Taiwan Stock Exchange Wednesday amid optimism toward its bottom line, dealers said.
Rotam shares rose 5.17 percent from its issue price of NT$85.00 (US$2.88) to close at NT$89.40, with 6.59 million shares changing hands, while the benchmark weighted index ended up 0.85 percent at 7,563.18.
The stock reached as high as NT$95.00 before pulling back in line with the broader market, which continued to battle concerns over global economic fundamentals and a possible capital gains tax on stock investments in Taiwan.
Market analysts said many investors have high expectations that the agrochemical company's rapid expansion will push 2012 sales more than 20 percent above its NT$6.51 billion in sales in 2011.
The company issued about 13.82 million shares at NT$85 each to raise some NT$1.17 billion, according to Yuanta Securities, one of the underwriters of the primary listing.
According to the prospectus of Rotam, which has been incorporated in the Cayman Islands since 2009, it will use part of the proceeds to expand its distribution points worldwide to meet growing demand.
The company, which has a production base in Jiangsu Province in China, engages in manufacturing, research and development, marketing and technical support. Its products included herbicides, insecticides, fungicides, growth regulators and plant nutrients.
At present, the company operates 10 distribution hubs around the world, such as the United States, China, Brazil, Chile and Argentina, and sells its products in more than 60 countries worldwide.
Rotam said it will continue its R&D efforts in a bid to secure more production registrations and become more competitive in the market.
So far, the company has secured more than 700 production registrations.
Analysts have forecast Rotam's earnings per share for 2012 at more than NT$6, compared with NT$5.29 in 2011.
(By Lo Hsiu-wen and Frances Huang)