Singapore-listed Yangzijiang Shipbuilding Holdings Ltd, a shipbuilder based in China, on Monday said that it has secured approvals from the Taiwan Stock Exchange and the Taiwan Central Bank to issue Taiwan Depositary Receipts in the island, sources reported.

The TDR offering plan is still subject to approvals from the Taiwan Executive Yuan, Taiwan's Securities and Futures Bureau and the Singapore Exchange.

In a statement filed with the Singapore Exchange, Yangzijiang Shipbuilding said that it plans to issue 120 million TDRs, which are equivalent to 100 million common shares and 20 million shares of private placement.

Upon the completion of the offering, Yangzijiang Shipbuilding is likely to become the first mainland-background firm that is listed on the Taiwan Stock Exchange.

TDRs refer to depositary receipts that are issued in Taiwan by overseas listed companies, including Taiwanese-owned firms listed abroad. The main purpose of TDR is to make easy for companies to raise funds in Taiwan. Since last year, the warm reception to TDR has underscored its tremendous potential, which will play an important role in the development of Taiwan into a regional fund-raising center.

The shipbuilder has won orders of building ten new ships worth US$234.2 million in total during the three-month period ended Jun. 30, said the statement.
On May 24, SinoPac Securities, the leading underwriter of the deal, announced that Yangzijiang Shipbuilding plans to raise US$100 million from a TDR offering in the second half of this year. 

Located in Jiangyin, Jiangsu Province, Yangzijiang Shipbuilding produces a range of commercial vessels, container ships, bulk carriers and multipurpose cargo vessels.
(Source: www.chinaknowledge.com )