Acer puts fundraising plan on ice as stocks struck by chilly winds
Could be 2015 before firm grabs its PC biz transformation funds
Acer could well postpone cash-raising activities on the Taiwanese Stock Exchange due to some volatility in its share price, according to founder Stan Shih.
The plan was to issue shares with a target price of NT$20 per unit but the PC maker’s valuation dipped NT$0.35 on the Exchange yesterday to NT$19.80, so investors are unlikely to bite down on that offer as it stands.
Taiwan-based Acer wants to drum up NT$3bn (£61m) to invest in transforming its PC operation, the company’s core business, Shih told a press conference in the firm's homeland.
The once high-flying notebook vendor’s fall from grace has been well documented by The Channel: it was hit hard by collapsing retail demand for low-cost machines and its moves into smartphones and tabs failed to resonate in the same way that Apple and Samsung devices did.
Following sweeping changes in leadership and a string of quarterly losses compounded by technology missteps, Acer is back in the black and last quarter posted some high-single digit shipment growth figures.
Shih temporarily returned to the operations last year and remains in the background as a guiding force.
The PC market is a tough place to eke out a living: Sony and Samsung (in Europe) hit the PC market eject button, and HP recently announced plans to hive off its personal systems and printing business.
Acer needs cash to afford some corrective surgery, though this will unlikely involve any job cuts because the company employs around 6,000 staff worldwide.
The company gave no clear indication of when it will kick off the fund raising placement will kick off, but it will likely be early next year.
Acer's share price stood at NT$19.95 at the close of the Taiwanese market today.
The company had not responded to calls for further comment at the time of writing. ®