Chinese chipmaker Hua Hong Semiconductor announced that it plans to raise 21.20 billion yuan ($2.95 billion) through an initial public offering (IPO) on Shanghai’s STAR board. The company aims to sell 407.75 million shares at CNY52.00 each, according to an exchange filing made on Sunday.
Hua Hong specializes in designing and manufacturing specialty process wafers. The funds raised from the IPO will be used to invest in a new fabrication plant in Wuxi and upgrade its 8-inch production line, both located in eastern China.
Driven by the ongoing technology rivalry between China and the U.S., several Chinese chip companies have recently gone public to enhance their businesses. China currently accounts for one-third of global chip sales and plays a vital role in the semiconductor supply chain.
Hua Hong, which ranks as China’s second-largest foundry, reported record revenue of $2.48 billion in 2022, a 52% increase from the previous year. This growth was supported by higher average selling prices of its products. In the first quarter of this year, the company achieved a net profit of $152.2 million, compared to $102.9 million in the same period last year.
Currently, Hua Hong’s shares in Hong Kong are up 0.40% at HK$25.40.