Asia Cement Corp., Taiwan’s second-biggest cement maker, will spin off its China unit to raise $300m in a Hong Kong initial public offering in the first quarter, Far Eastern’s Chairman Douglas Hsu said in an interview in Taipei today. Asia Cement rose by the daily limit in Taipei trading.
"It’s our group policy that when you grow to a right size you should be listed,’’ Hsu said. "Once you are listed, you can follow the right corporate governance.’’
Far Eastern will join Hon Hai, Taiwan’s biggest technology business group, in listing their China units in Hong Kong to tap a surge in the city’s stock market. Hong Kong’s benchmark Hang Seng Index has risen 42 percent this year, while Taiwan’s benchmark Taiex has gained 7.9 percent.
Asia Cement rose 6.8 percent to NT$44.15 as of 12:45 p.m. on the Taiwan Stock Exchange. The stock has jumped 52 percent this year on the Taiwan Stock Exchange.
China accounts for about 20 percent of Asia Cement’s sales. The Taipei-based cement maker plans to use the proceeds to build new factories in China, Hsu said.