LCD panel maker Innolux Corp’s (群創光電) shareholders yesterday approved the company’s proposal to divest its shares in InnoCare Optoelectronics Corp (睿生光電), paving the way for the medical display manufacturer’s initial public offering (IPO).

InnoCare would be the first spin-off from Innolux that goes public as the company undergoes further restructuring. The IPO plan comes amid high demand for medical devices and displays due to the COVID-19 pandemic.

Founded in April 2019, InnoCare has paid-in capital of NT$310 million (US$11.11 million).

It manufactures X-ray image sensor displays that are used in hospitals and clinics for digital X-rays, replacing conventional X-ray films.

Innolux said the IPO plan would help facilitate the expansion of InnoCare, retain talent and introduce strategic partners.

The company said it is to retain at least a 50 percent stake in InnoCare following its debut, but did not give a detailed roadmap for its IPO plan.

Headquartered in Miaoli City, Innolux is one of the world’s biggest suppliers of medical displays, ranging from 15-inch to 23.8-inch high-definition display modules used in computed radiography, digital radiography, magnetic resonance and mammography.

Aside from InnoCare, Innolux in March 2019 spun off its vehicle display business and founded CarUX Technology Inc (群豐駿), with paid-in capital of NT$1.4 billion.

The company plays a major role in the vehicle display supply chain, with customers including Tesla Inc, BMW AG, Ford Motor Co and General Motors Co.

InnoCare and CarUX are based in Tainan’s Southern Taiwan Science Park (南部科學園區).

Innolux shareholders also approved a proposal to distribute a cash dividend of NT$0.4 per share, with the company allocating NT$1.05 billion from capital surplus to fund part of the distribution.

That translates into a dividend yield of 1.9 percent based on Innolux’s closing share price of NT$20.75 yesterday.

Innolux returned to the black last year, posting a net profit of NT$1.64 billion, or NT$0.17 per share, compared with a loss of NT$17.44 billion, or minus-NT$1.77 a share, in 2019.

Origin: Taipei Times / By Lisa Wang / Staff reporter
Link: https://www.taipeitimes.com/News/biz/archives/2021/07/02/2003760140