| dc.description.abstract | Most Taiwanese Electronics Companies operate both in Taiwan and China. To effectively compete with international companies in the rapidly growing Chinese market, many companies increase investment, set up local Chinese offices and factories, and expend capacities aggressively. However, as manufacturing cost in China escalates, coupled with the rise of Chinese “Red supply chain,” many of them encounter unsurmountable survival challenges. Yet some of them transform successfully through proactively evolve by seeking new opportunities. Many of these Taiwanese companies are going through a family succession process, where second generations take over the business. Many of them are looking for ways to lead the company into another growth stage, planning future blue print for business development. This becomes an important business decision for much of the publicly listed companies.
This study is about one of these companies described above. Group Corporation W is an electronic connecting cable manufacturer, publicly listed in Taiwan. This study reviews its development and transformation trajectory. Since the pursuit of business growth is a primary strategic objective of a company, public listing can enhance its visibility and attract talent, increase opportunities for alliances and raise funds to replenish operating foundations. This study analyzed the possibility of its Chinese subsidiary to be public listed in China. The result is a proposal, including organization structural adjustment among its many affiliated units, and integrating equity to achieve growth targets, in preparation for IPO (Initial Public Offering) in China.
The key is an acquisition and merger of its various affiliated units in China, forming a subsidiary holding company in China, achieving a synergy where the resulting holding company’s equity can be integrated and expanded. The proposal also includes adjusting the group′s order-taking model, so that the financial numbers can be attributed to the holding company. A feasibility analysis is also conducted. It is expected that the proposed holding company in China can file for IPO in 2023. | en_US |