ProMOS Technology will reduce its paid-in capital by 85%, or about NT$21.62 billion (US$750 million), to NT$3.815 billion, its board of directors decided on July 6.

After the downsizing, the company will move to raise new capital through private placement in order to bring in new strategic partners as well as improve its weak financial structure, according to a separate decision made by the board.

ProMOS unveiled plans to issue up to 1.5 billion new shares, or up to NT$6 billion worth of shares, to its creditors, which have agreed to convert the debts that ProMOS owes into equity. Separately, ProMOS will sell up to two billion new shares via a private placement, the company said.

ProMOS is scheduled to hold a special shareholders meeting on August 26 to vote on the capital downsizing and planned fundraising.

ProMOS previously slashed its capital base by 65% to NT$25.4 billion from the original NT$72.6 billion

By: DocMemory
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