Neo-Neon Holdings Ltd, a China-based decorative light manufacturer founded with Taiwanese capital, plans to raise US$63 million by issuing Taiwan Depositary Receipts (TDR) before the end of 2009, said its underwriter Fubon Securities Co recently.

“About 140 million units of TDRs will be issued, with each unit representing half of the company’s common share,” Fubon Financial Holding Co senior vice president Chen En-kuang said. The pricing for Neo-Neon’s TDR will be finalized next month in accordance with its share price in Hong Kong, he said.

The world’s largest manufacturer of decorative lighting products, Neo-Neon accounts for about 50 percent of the market, according to Fubon. And the company claims to be a major provider of LED decorative illumination products worldwide. Chen noted that US$50 million of the capital raised from the TDR will be used to expand the company’s business to the upstream LED production. And the company does not rule out seeking strategic partners to tap into the supply chains for LED backlighting products, Fubon said.