Hua Hong Semiconductor, a leading Chinese chipmaker, experienced a significant boost in shares during its Shanghai debut on Monday. The company successfully raised close to $3 billion in its initial public offering (IPO), making it the largest IPO in China this year.
Impressive Stock Performance
Following its debut, Hua Hong Semiconductor's stock surged by as much as 15%. Currently, the shares are up by 3.9% at 54.00 yuan (US$7.53) per share.
Record-breaking Capital Raised
Hua Hong Semiconductor managed to sell 407.75 million shares at CNY52.00 each, resulting in a substantial gross proceeds of CNY21.20 billion. This remarkable achievement solidifies the offering as the biggest share-sale on the A-share market in 2021.
Boosting Domestic Semiconductor Suppliers
This IPO joins a wave of Chinese chip makers that have recently gone public. The Chinese government has been indicating its support for domestic semiconductor suppliers, especially amidst the ongoing tech rivalry and geopolitical tensions between the United States and China.
Expansion and Upgrades Ahead
With the funds raised from the IPO, Hua Hong Semiconductor has ambitious plans in mind. The company intends to invest in a new state-of-the-art fabrication plant located in eastern China. Additionally, they plan to upgrade an existing production line, further solidifying their position in the market.
By successfully making its mark in the Shanghai market, Hua Hong Semiconductor reaffirms its position as a key player in China's chipmaking industry.