Hong Kong-listed Hua Hong Semiconductor, China’s second-largest chip maker, has received regulatory approval for a $2.5 billion initial public offering (IPO) in Shanghai, as the company forges ahead amid Beijing’s self-sufficiency drive despite new headaches from US restrictions, reports the South China Morning Post.
Hua Hong has received a letter of acceptance from the Shanghai Stock Exchange to issue yuan-denominated shares and list them on its Science and Technology Innovation Board (Star Market), the company revealed in a filing to the Hong Kong stock exchange on Friday.
The state-backed company aims to raise RMB 18 billion to fund capacity expansion in China’s semiconductor heartland of Wuxi, northwest of Shanghai, according to the company’s prospectus. The funds will also be used to upgrade its 8-inch wafer fabrication plants and innovate new technologies, Hua Hong said.
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