China's Founder Group plans stock listings in Japan, Malaysia
( 2001-08-07 17:31) (7)
Founder Group, a developer of software for electronic publishing and one of China's largest 10 technology firms, plans listings in Japan and Malaysia, executives said on Tuesday.
The listings would be aimed not just at raising funds, but also at helping the company become better known among tech-savvy customers along the Pacific rim, the officials said.
"Founder is not so well-known in Japan, and we hope a stock listing will make us a more recognized brand," said a Tokyo-based spokeswoman for Founder.
While more than 50 Chinese companies have already sold shares abroad, Founder would be breaking new ground by being the first state-owned technology company rooted in the domestic market to list overseas, the official Xinhua news agency said.
PUC Founder (MSC) Berhad, the company's Malaysian subsidiary, planned to raise about 10 million ringgit (US$2.6 million) via its listing, said Teh Hon Seng, the Malaysian company's chief executive.
Teh said the local securities commission had given its approval, and that listing on the Malaysian Exchange of Securities Dealing and Automated Quotation would probably be completed within the next six months.
According to Teh, the listing would finance operations and research and development.
A recent Founder press release also noted the company's share sale could help "further promote its image and reputation in the South East Asia and the Greater China Regions."
According to the Tokyo-based spokeswoman, Founder's Japanese listing plans were still in a preliminary stage, and it could be another two or three years before the share sale actually went ahead.
According to Xinhua, the listing was scheduled to take place on Japan's Nasdaq stock market.
"The funds raised in the listing will help finance a marketing drive to improve sales of the company's products in Japan," the spokeswoman said.
By pushing its overseas listing plans, Founder is heeding mounting calls by the Chinese officials for local companies to become better tuned into business trends abroad.
"Founder believes that it is possible and also necessary to take root in the international market and to show before the whole world our own strength," Founder vice president Alan Cheung was quoted as saying by Xinhua.
Chinese companies are under extra pressure to adopt international practices as the country may enter the World Trade Organization as early as this year, opening the floodgates for foreign competition.
Founder, established in 1986 under the name Peking University High Technology Company, is already listed in Hong Kong.
It controls about 80 percent of the domestic market for Chinese character printing and also makes software for industries such as banking and retailing.
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