A-Data Technology aims to raise NT$1.5 billion in new shares and floating NT$1 billion in convertible bonds in a move to strengten its financial statement and expand NAND flash capacity, a report said.

A-Data will issue 6.25 million shares with a target share price of NT$80 and five-year Taiwan Dollar denominated convertible bonds at a per unit price of NT$100,000.

The company projects to lower its debt ratio to 40% by issuing the new shares, down from 50.8% in the third quarter, according to company chairman Simon Chen, as quoted by the Chinese-language Commercial Times.

With NAND flash supply lagging demand, the raised funds from the convertible bond issue will be used to expand flash capacity, especially at its China plant, which is slated to start volume production in June 2006, the report noted.

By: DocMemory
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