Fubon Securities Resigns as Recommending Broker, Share Price Plunges Over 30%
Fubon Comprehensive Securities announced on 10月28日 that it had applied to resign as the recommending securities firm for 山太士 emerging stocks, effective from 10月30日. The news triggered heavy selling pressure, and the emerging-stock price of 山太士 was weak, falling intraday to 395.5元, down 428.71元, a drop of up to 52%, before narrowing the decline at the close to finish at 575元, still down 249.21元, or 30.24%.
Chairman: Handled in Compliance With Regulations, 6 Recommending Brokers Remain
Chairman 吳學宗 said that emerging-market trading is mainly matched through brokers, and under the regulations recommending securities firms must maintain a certain inventory of shares, and if holdings fall below the required threshold and are not replenished within the deadline, action must be taken in accordance with the regulations. Fubon Comprehensive Securities's application to resign was handled in compliance with the regulations. He stressed that brokers are welcome to serve as recommending securities firms to increase trading activity, and after the resignation 山太士 still has 6 recommending securities firms.
Lead and Counseling Brokers Unchanged, Aiming for OTC Listing in 明年1月
The OTC listing case of 山太士 has passed review by the OTC Listing Review Committee and was approved by the board of the Taipei Exchange, with the listing contract approved on 8月26日. 吳學宗 said that currently 永豐金 Securities serves as the lead underwriter, and the 3 counseling brokers — 中國信託綜合證券, 群益金鼎證券 and 台新綜合證券 — also remain unchanged, the listing case will not be affected at all, the listing schedule is completely unaffected, with listing expected in 明年1月.
Revenue for First Three Quarters Up 68.4% Year-on-Year, Fubon Securities Explains Considerations
吳學宗 pointed out that the company's operations are all normal, with operations trending upward through the first 3 quarters this year, with cumulative revenue for the first 3 quarters reaching NT$5.9億元, up 68.4% year-on-year. Orders from semiconductor fab customers represent long-term demand, and he hopes 4th-quarter results can continue the climbing trend, and will continue to pursue new customers and new orders to drive operating growth next year. Fubon Securities said that as it is neither the lead securities firm nor a co-underwriting securities firm and did not participate in the OTC listing underwriting operations, serving only as one of the recommending securities firms, considering that 山太士 has entered the OTC listing underwriting stage, and recent emerging-market share price volatility has increased market-making difficulty, to avoid larger impacts of price volatility on profits and losses, it resigned after comprehensive evaluation, with shareholding positions and quotation adjustments during the period handled in accordance with relevant Taipei Exchange regulations and internal rules.