Scaled down CSMC IPO nets US$39.8 million

Wuxi-based contract semiconductor maker CSMC Technologies Corp said it would raise HK$310.5 million (US$39.8 million) from its initial public offering. After finally reaching a consensus with participating banks, CSMC lowered its share price to 50 Hong Kong cents, well down from pricing envisaged in earlier plans. The final price came to 14.8 times projected 2004 earnings. Some 10% of the 621 million shares sold were allocated to retail investors who oversubscribed the issue 3.1 times, the company said. Institutions gave CSMC a cooler reception, only moderately oversubscribing the offer. Existing shareholders, including private equity firms 3i, Templeton Strategic Emerging Markets and World Bank affiliate International Finance Corp, were allocated slightly over half the new shares.