Visitors go to the stand of Huahong Group at an exhibition in Shanghai, China, June 15, 2023. On August 7, 2023, Huahong Group, the world’s sixth largest foundry semiconductor producer, formally landed on the A-share science and know-how innovation board, and the opening worth rose by greater than 13% on the primary day. (Photo by Costfoto/NurPhoto through Getty Images)
Costfoto | Nurphoto | Getty Images
Shares of Chinese chipmaker Hua Hong jumped 13% on the open throughout its market debut on Shanghai Stock Exchange’s Star Market on Monday, however shortly gave up positive factors.
Hua Hong is China’s second-largest chip foundry after Semiconductor Manufacturing International Corp. (SMIC). Hua Hong’s preliminary public providing is the most important one in Mainland China to date this 12 months, in keeping with EY’s international IPO report.
Shares of the chipmaker opened on the Nasdaq-style Star Market at 58.88 Chinese yuan, in keeping with Refinitiv knowledge. That’s a 13.2% leap from its supply worth of 52 Chinese yuan ($7.23).
The Shanghai-listed shares have since pared positive factors and had been buying and selling decrease at 53.99 Chinese yuan on Monday afternoon.
The firm, which produces semiconductors utilizing superior wafer course of applied sciences, beforehand stated that it’ll promote 407.75 million shares at a worth of 52 Chinese yuan per share, in keeping with a submitting. That represents 21.2 billion yuan ($2.95 billion) raised.
Chips produced by the Shanghai-based firm are utilized in industries spanning client electronics, communications, computing, industrial and automotive.
Hua Hong has been listed within the Hong Kong change since 2014. Its Hong Kong-listed shares plummeted as a lot as 7.4% on Monday.
Phelix Lee, fairness analyst at Morningstar Asia, stated the dimensions of Hua Hong’s IPO is just not vital.
“I don’t think it’s a big deal in the grand scheme of things as the deal size is smaller than SMIC’s IPO 2 or 3 years ago,” stated Lee. “The trend of encouraging local chipmakers and other semi-related companies to list domestically is intact and we view there are more semiconductor IPOs to come.”
SMIC raised 46.28 billion yuan ($6.62 billion) throughout its IPO in 2020.
Hua Hong’s itemizing comes as Chinese firms search to lift capital to ramp up on superior chip tech as China seeks self reliance on superior chip tech amid Washington’s efforts to chop Beijing off from superior chip tech.
Source: www.cnbc.com”