|
Investment News |
||
|
Devonshire Capital Bank of New York sponsors ADR program for Malaysian computer company Patimas Computers Berhad (PTCBY US) is pleased to announce the establishment of an ADR program instigated by Devonshire Capital and sponsored by the Bank of New York. Background: As a second-board Malaysian information technology counter, Patimas's domestic plans to finance its expansion program were put on hold when Malaysia introduced capital controls in 1997. Even though the company's balance sheet was strong and its strategic business partners included the likes of IBM, international investor sentiment at the time dictated that all Malaysian companies were 'off-limits'. However, Patimas has managed to keep a good profile with investors in the United States via the ADR programme set up with help from Devonshire Capital. Devonshire's objective was to make certain Patimas is in a position to access international markets as and when appropriate. The solution, according to Affleck, was simple. "Patimas is a quality second board counter in an industry with excellent growth potential," he explains. "Affected in the short-term by capital controls, our job was to ensure it would not suffer in the long-term. With this in mind we persuaded the company to embark on an ADR program with a view to possibly raising capital on Nasdaq in the future, via a level two or level three program." Raymond Yap, Patimas's Managing Director was pleased with the results. "We managed to keep a decent profile with US investors at a time when most other companies were simply ignored," recalls Yap. "We were very grateful to Devonshire for finding the solution to a difficult problem for us." |
||
|
<< back |
 |
 |
