A Chinese company backed by SMIC, the country's largest semiconductor company, plans to raise $1.4 billion in what is expected to be Asia's biggest initial public offering this year.
Shaoxing Corp., a semiconductor company, is offering 1.69 billion shares at 5.69 yuan each to raise 9.63 billion yuan on the Shanghai Stock Exchange’s STAR Market, a model similar to Nasdaq in the US, according to a filing with the exchange. The sale officially begins on April 26.
If successful, the IPO would surpass the 7.84 billion yuan real estate investment trust offering last month, making it the largest deal in Asia this year.
Shaoxing Semiconductor Manufacturing Co., based in Zhejiang province, had revenue of 4.6 billion yuan last year and is expected to be valued at 38.5 billion yuan after its IPO. A unit of SMIC directly holds a 19.6 percent stake in the company, while the parent SMIC also owns stakes in some of Shaoxing’s top shareholders.
In addition, Changxin Memory Technologies, a local rival of Samsung Electronics, also plans to file for an IPO this year, a move that shows Beijing is increasingly mobilizing resources to boost its domestic technology sector.
(According to Bloomberg)
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