The Bank of New York has been selected by Chunghwa Telecom Co. Ltd. (Chunghwa) as the depositary bank for its secondary offering of American depositary receipts (ADRs). Each Chunghwa ADR represents ten ordinary shares. The ADRs trade on the New York Stock Exchange under the symbol “CHT,” and the ordinary shares trade on the Taiwan Stock Exchange.
According to Chunghwa’s 2004 annual report, the company is the largest telecommunications service provider in Taiwan and has the largest market share in each of its key business lines. Chunghwa provides a full range of telecommunication and information-related services, covering fixed-line services, wireless services, and Internet and data services.
Christopher Sturdy, managing director and head of The Bank of New York’s Depositary Receipt Division, said, “This is truly a landmark transaction, with $2.56 billion in ADRs being offered to the U.S. marketplace. ADRs are an effective capital-raising tool for companies around the world, providing direct, streamlined access to U.S. retail and institutional investors. We are pleased that Chunghwa chose to partner with us on this notable transaction and look forward to providing the company with innovative products and services.”
The Bank of New York sponsors more than 1,190 American and global depositary receipt programs, a 64% market share, acting in partnership with leading companies from 60 countries.