Via intends to raise US$350 million through the sale of American depositary receipts, instead of the US$500 million originally targeted, said Charlton Chen, Via's investor relations manager, at an investment seminar in Hong Kong. The company will use the funds to buy a communications chip company in the US.
Via joins other Taiwanese companies including Chunghwa Telecom Co and Compal Electronics Inc that have been forced to delay or reduce the size of share sales as investors sour on the technology business. Still, Via may now need less money to acquire the US company, whose share price has probably fallen.
"Share prices of chip companies in the US are quite cheap now," said Richard Ko, an analyst with Deutsche Bank Securities in Taipei. But it's also more difficult to raise money now."
Via, which bought networking technology from 3Com Corp. of the US last year, seeks to enhance the value of its computer chip products with wireless capabilities from the unidentified company it will acquire.
The company's shares rose 1.7 percent to NT$352.
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