- Hua Hong is the second largest chip foundry in China after Semiconductor Manufacturing International Corp.
- The listing comes as Chinese companies seek to raise capital to ramp up advanced chip technology as China seeks self-sufficiency amid Washington’s efforts to insulate Beijing from advanced chip technology.
- Hua Hong was first listed in Hong Kong in 2014. Its Hong Kong-listed shares plunged 7.4% on Monday.
Visitors visit the booth of Huahong Group at an exhibition in Shanghai, China, on June 15, 2023. On August 7, 2023, Huahong Group, the world’s sixth-largest foundry semiconductor manufacturer, officially entered the board of innovation in science and technology from A-share. and the opening price rose more than 13% on the first day. (Photo by Costfoto/NurPhoto via Getty Images)
costphoto | Nurfoto | fake images
Shares of Chinese chipmaker Hua Hong rose 13% at the open during their market debut Monday on the Shanghai Stock Exchange’s Star Market, but quickly gave up gains.
Hua Hong is the second largest chip foundry in China after International Semiconductor Manufacturing Corporation. (minimum salary).
Shares of the chipmaker opened on the Nasdaq-style Star Market at 58.88 Chinese yuan, according to Refinitiv data. That’s a jump of 13.2% from its offer price of 52 Chinese yuan ($7.23).
Shares listed in Shanghai have since pared gains and were trading lower at 53.99 Chinese yuan on Monday afternoon.
The company, which produces semiconductors using advanced wafer processing technologies, previously said it will sell 407.75 million shares at a price of 52 Chinese yuan per share. according to a file.
Hua Hong’s Shanghai debut grossed 21.2 billion yuan (2.95 billion US dollars), in what was the largest IPO in mainland China so far this year, according to EY’s global IPO report.
Chips produced by the Shanghai-based company are used in industries spanning consumer electronics, communications, computing, industrial and automotive.
Hua Hong has been listed on the Hong Kong Stock Exchange since 2014. Its Stocks listed in Hong Kong it plunged as much as 7.4% on Monday.
Phelix Lee, a Morningstar Asia equity analyst, said the size of Hua Hong’s initial public offering is not significant.
“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 2-3 years ago,” Lee said. “The trend of encouraging local chipmakers and other semi-related companies to list nationally is intact and we see more semiconductor IPOs to come.”
elevated SMIC 46.28 billion yuan ($6.62 billion) during its 2020 IPO.
Hua Hong’s listing comes as Chinese companies seek to raise capital to ramp up advanced chip technology as China seeks self-sufficiency amid Washington’s efforts to insulate Beijing from advanced chip technology.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.