Hannstar completes CB

Does completion signal returning confidence to the TFT-LCD sector?

Taiwanese flat panel producer Hannstar Display Corp completed an increased $140 million convertible via UBS on Monday. The deal represents the first time a TFT-LCD manufacturer has accessed the international capital markets since LG Philips LCD completed a dual listing in New York and Seoul in mid-July.

The sector has been in freefall since mid-April, with Hannstar down almost 60% from its year-to-date high of NT$24.20 on April 19. Tech specialists say market participants remain equally divided between those who believe the sector could fall another 20%, those who believe it will be range-bound for another quarter and those who are starting to bottom fish.

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