SinoPac Holdings Resolves to Conduct a Cash Capital Increase, Strengthening Its Securities Subsidiary’s Capital Structure
June 26, 2026 – The Board of Directors of SinoPac Holdings (TWSE: 2890) today resolved to conduct a cash capital increase by issuing up to 760 million new common shares. The tentative issue price is set between NT$26.6 and NT$50 per share, with the actual price to be determined in accordance with the industry's self-regulatory rules for securities issuance. The offering is expected to raise NT$20 billion. SinoPac Holdings stated that the primary purpose of this capital increase is to address the robust trading volume in the Taiwan stock market, which has driven strong capital demands at SinoPac Securities for margin trading, unrestricted−purpose loans, and proprietary trading. To support the subsidiary′s operations and business expansion, the Holding Company will inject NT$12.5 billion into SinoPac Securities. The Board also resolved to utilize the remaining NT$7.5 billion to repay the Holding Company's debt and bolster overall capital.
The market capitalization of the Taiwan stock market reached NT$157 trillion on June 26. Compared to NT$40 trillion at the end of 2019, this represents a 3.9-fold increase, enabling Taiwan to surpass India and become the world's fourth-largest equity market. Furthermore, the average daily turnover in the first five months of this year (5M26) reached NT$1.19 trillion, a 4.7−fold increase from NT$255.5 billion in 2020. SinoPac Securities reported a record-high net profit of NT$6.24 billion for 5M26, representing a stellar 327% YoY growth.
In addition, SinoPac Securities continues to demonstrate its strong ambition to expand its client scale. Following the integration of CL Securities Taiwan (CLST) last October to expand its foreign institutional investor (FINI) footprint, SinoPac Securities announced today that it will enter into a statutory merger to absorb King's Town Securities. This strategic move will further broaden the breadth of its retail client base and increase market share. SinoPac Securities will be the surviving company. The merger record date will be determined after obtaining regulatory approval. The merger consideration will be paid in cash to acquire 100% of the shares held by King's Town Bank in King's Town Securities, based on the net asset value (NAV) on the day prior to the merger record date.
Looking ahead, Taiwan is poised to continue benefiting from the global wave of AI investments. The replenished capital will empower SinoPac Securities to foster the healthy development of Taiwan's capital market and meet the demands for new businesses recently permitted by the Financial Supervisory Commission (FSC). These include sub-brokerage margin financing and unrestricted-purpose loans, FINI derivatives, Offshore Securities Unit (OSU) unrestricted-purpose loans, and six-month financing facilities for FINIs. Based on pro forma calculations utilizing operating data as of the end of May and the NT$20 billion capital increase, the Holding Company's Capital Adequacy Ratio (CAR) is expected to improve by 19 percentage points, while its double leverage ratio will decrease by 5 percentage points. Concurrently, SinoPac Securities' CAR will surge by 167 percentage points, and its debt-to-equity ratio will drop by 120 percentage points. This will significantly expand the headroom for robust growth across its securities business operations.
SinoPac Holdings plans to submit the cash capital increase application to the Securities and Futures Bureau (SFB) in August. Following regulatory approval, the actual issue price will be determined by the Chairperson, under the Board's authorization, based on prevailing market conditions. The capital injection is expected to be completed in the fourth quarter of 2026. The preemptive subscription ratio for existing shareholders is tentatively set at 80%, although the actual allocation will be based on the number of shares held as recorded in the shareholder register on the record date.