The Chinese mainland’s top chipmaker Semiconductor Manufacturing International Corp. (SMIC) plans to raise as much as RMB 53.2 billion ($7.5 billion) in its upcoming Shanghai listing, which is poised to be the mainland’s biggest share sale in a decade, reported Caixin.
The company plans to sell 1.68 billion shares priced at RMB 27.46 each, according to a company statement released on Sunday, with an overallotment option allowing the total to rise to 1.9 billion shares. Supplementing SMIC’s Hong Kong listing, the offering is set to be the largest since Agricultural Bank of China Ltd. raised RMB 68.5 billion in its 2010 IPO.
The fundraising figure in the Sunday statement is more than double the RMB 20 billion amount estimated in its prospectus, and gives SMIC a price-to-earnings (PE) ratio of 83.44 — around four times higher than industry counterparts like Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) Other mainland bourses generally enforce an informal limitation that caps companies’ PE ratio at 23; the STAR Market does not.
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