Taipei, Aug. 13 (CNA) Multi Sports Holdings Ltd., a Malaysia-listed manufacturer of sports shoe soles, has filed an application with the Taiwan Stock Exchange to issue Taiwan depositary receipts (TDRs) on the main board, the exchange said Saturday.

Multi Sports is planning to issue 22.50 million TDRs, each representing three common shares of the company, which has been listed on the Bursa Malaysia since 2009, the exchange said.

According to the company’s prospectus, Multi Sports expects to raise NT$301.5 million (US$10.4 million) from the TDR listing as it has tentatively set the issue price at NT$13.40.

The company said it will use the proceeds from the TDR sale as its working capital to purchase production equipment in China, where Multi Sports has a huge manufacturing base.

Through the TDR listing, Multi Sports aims to boost its competitiveness and its international reputation.

Currently, Multi Sports, founded in 1993, operates in Jinjiang, Fujian province, which is called “China’s shoe city.” The company specializes in design, production and sale of quality soles for sports shoes.

It describes itself as one of the few companies in Jinjiang to employ integrated one-stop production technology based on years of research and development.

Multi Sports said it supplies soles to medium sized sports shoe brands in China, such as 361 Degrees, Xidelong and Deerway.

In 2010, Multi Sports generated all of its sales from the China market, with Jinjiang accounting for more than 60 percent of its total sales of NT$2.72 billion.

The company said it has benefited from the fast growing economy in China and expects the booming demand there to continue to drive up its growth.

Last year, Multi Sports posted NT$746.06 million in net profit, with a gross margin of 32.40 percent and a net margin of 27.39 percent.

(By Frances Huang) enditem /pc