Taipei-Shares of Acer Cyber Security Inc., an information security management services subsidiary of PC brand Acer Inc., rose more than 130 percent on its first day of trading on Taiwan's over-the-counter (OTC) market Wednesday, dealers said.
Acer Cyber is the first information security solutions provider in Taiwan to launch an initial public offering, giving a new niche to investors looking for a different place to park their funds, they said.
Shares of Acer Cyber opened up about 136 percent from its issue price of NT$55 (US$1.80) because of the general interest often shown on the first day IPO issues are traded and optimism over the company's profitability.
The stock closed up 136.36 percent at NT$130.00, with 1.58 million shares changing hands on the OTC market, where the index ended up 0.47 percent at 145.06 points.
Dealers said investors were optimistic over Acer Cyber's future given the strong demand for information security services at home and abroad at a time when hacking is a major concern of both public and private institutions.
In the third quarter, Acer Cyber had consolidated sales of NT$172 million, up 37.1 percent from a year earlier, and its net profit was up 45 percent from a year earlier at NT$15 million, with earnings per share of NT$1.22.
In September alone, Acer Cyber posted net profit of NT$12.83 million, up 233 percent from a year earlier. EPS was NT$1.02, well above NT$0.16 in August and NT$0.30 during the same period last year.
In the first nine months of 2019, Acer Cyber had a net profit of NT$48.75 million and EPS of NT$3.84 on consolidated sales of NT$445 million.
Acer Cyber said it expects many entities in Taiwan and overseas will need the support of the reliable security operation center (SOC) services it can provide to help clients integrate their information security resources.
According to market data, Acer Cyber secured the largest share of SOC service deals through Taiwan government auctions from 2015 to 2019.
The company said it now is looking to expand beyond Taiwan to diversify its sources of income and has its sights set on the Southeast Asia market.
Acer Cyber has already started to work with clients in providing SOC services in Thailand, and those efforts are expected to start generating sales in 2020.
It is also in talks with companies in Indonesia and Malaysia on possible strategic partnerships.
Source: Focus Taiwan News Channel