Chunghwa Telecom has sold a 14% stake in the company through an offering of American Depositary Receipts worth USD2.56 billion, effectively completing the long-running saga of the Taiwanese company’s privatisation. Chunghwa sold 135.1 million American Depositary Shares priced at USD18.98 each, equivalent to a 3% discount on the closing share price of USD19.57 in New York, Tuesday, in an offering that was oversubscribed due to heavy investor demand; originally Chunghwa intended to sell 125.4 million shares.
In a statement Chunghwa confirmed it had successfully lowered the Ministry of Transportation and Communication’s shareholding in the company to below 50% and completed its overseas share offer. Private ownership releases Chunghwa from having to seek parliamentary approval for its annual budget. In the wake of the sale, Chunghwa’s share price climbed 2.46% in Taiwan in Wednesday trading, ending the day at TWD62.50.