Japanese firm to be first to launch primary listing in Taiwan

05/10/2021 09:11 PM
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CNA file photo
CNA file photo

Taipei, May 10 (CNA) IKKA Holdings (Cayman) Ltd., a precision plastic injection molded component maker, is expected to become the first Japanese company to launch a primary listing in Taiwan, with its listing on the Taiwan Stock Exchange (TWSE) scheduled for May 31, according to the exchange.

IKKA Holdings, registered in the British Cayman Islands in March 2016, has its major operations in Japan as an electric vehicle part supplier to large Japanese automakers.

For the listing, IKKA Holdings is planning to issue 5 million new shares and has tentatively set an issuance price of NT$76 (US$2.73), with 15 percent of the shares to be reserved for its employees.

In its underwriting process, an auction is scheduled for May 11-13 on a floor price of NT$66.09 and the bidding results are expected to be announced on May 17, the TWSE said.

Concord Securities and First Securities will serve as the underwriters for IKKA Holdings' listing.

According to IKKA Holdings, auto parts account for 60.9 percent of its total sales, with Japanese auto brands such as Toyota, Honda and Nissan its major customers.

In addition to electronic parts, IKKA also serves as a supplier of toilet and bathroom equipment and automation machinery. Japan's Sumitomo, Aisin and TOTO are among the company's top three customers, while Germany's Bosch is the major buyer of IKKA Holdings' automation machinery.

Currently, IKKA Holdings rolls out its electronic parking brakes and toilet and bathroom items in Japan and China, produces relay boxes in Vietnam, and manufactures automation machinery parts in Malaysia.

IKKA Holdings posted NT$5.20 in earnings per share (EPS) in 2020 on sales of NT$3.62 billion after NT$5.93 in EPS in 2019 and NT$4.19 in 2018.

In the first four months of this year, it posted NT$1.269 billion in consolidated sales, up 17.12 percent from a year earlier, while its sales for April soared 20 percent year-on-year to NT$306 million.

(By Chung Jung-feng and Frances Huang)

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