CSMC cuts price, readies for IPO

Wuxi-based semiconductor contractor CSMC Technologies Corp will re-launch its stalled Hong Kong flotation bid after agreeing with its underwriter Citigroup to cut its offer price target by 20%, the South China Morning Post said, noting the offering could happen within days. The company originally sought to raise HK$683 million (US$88 million) in June, but the plan was scrubbed five days before its scheduled launch when the market looked askance at its offer to sell shares at between 73 Hong Kong cents and HK$1.10 each, equivalent to 20.9 to 31.5 times earnings. Competitor Semiconductor Manufacturing International Corp (SMIC) had already been underperforming the Hang Seng Index at the time.