Rongke (4989), an upstream materials supplier for the semiconductor and PCB sector, will hold a public share subscription from July 20 to July 22. Using the article’s figures of a NT$60 underwriting price and a latest traded price of NT$70.6, one winning lot would translate into a potential profit of about NT$10,530, with an estimated return of 18%.
What Rongke does
Rongke is a specialist manufacturer of electrolytic copper foil under the Lee Chang Yung Group. The company focuses on research, development and production of what the article describes as “pure electrolytic copper foil,” a key conductive material used in printed circuit boards, or PCBs, and copper clad laminates, or CCLs.
As competition intensified in traditional copper foil products, Rongke has shifted its focus in recent years toward higher-frequency, high-speed applications, advanced HDI products and automotive uses. The report says its hyper very low profile, or HVLP, copper foil and reverse treated foil, or RTF, are designed to reduce signal loss and have entered supply chains tied to AI servers, 800G high-speed switches and low-earth-orbit satellites. Its operating performance, according to the article, is closely linked to demand for AI networking hardware and to international copper price trends.
How the public subscription process works
The article explains that the formal name for Taiwan’s stock lottery mechanism is public subscription. It is used when companies issue shares to the public to raise capital. In cases such as an initial public offering or a cash capital increase after listing, companies are required to allocate a portion of shares for public subscription.
Investors apply through their broker’s trading platform and must make sure the designated settlement account has enough money on the deduction date to cover the subscription payment and related fees. If the number of applicants exceeds the number of shares available, the Taiwan Stock Exchange conducts a computerized random draw to allocate the shares.
Costs and risks investors need to consider
The main attraction for most investors is the spread between the underwriting price and the market price. Lead underwriters typically offer shares at a discount to encourage participation.
Still, the process carries costs and liquidity constraints. Once the subscription closes, the full subscription amount is deducted and frozen for several trading days until refunds are made to applicants who do not win shares. The article also notes fixed charges for each application: a NT$20 processing fee and a NT$50 mailing fee for the winning notice. If an investor does not win, the subscription funds and the NT$50 mailing fee are refunded, while the NT$20 processing fee is not.
Rongke’s current offer
The report says Rongke will open subscriptions from July 20 through July 22. The company was listed in 2018. Its share price, according to the article, rose from a low of NT$45 in February this year and at one point reached NT$125. The company is offering 3,010 lots in this round, and the article says the winning rate is estimated to be higher than 1%.
To take part, investors need to enter the stock subscription section in their securities app before 2 p.m. during the July 20 to July 22 window and deposit NT$60,070. Results are scheduled to be announced on July 24.