Hua Hong Semiconductor Ltd, a leading Chinese chipmaker, has been granted approval by the Shanghai Stock Exchange to proceed with its planned $2.6 billion share listing on the city's thriving STAR Market. The green light comes after thorough assessment by the bourse's listing committee, and paves the way for Hua Hong to submit an application for registration with China's securities regulator.
The company aims to raise up to 18 billion yuan ($2.60 billion) through this venture in order to bolster investment opportunities and drive innovation within its operations. This move places Hua Hong among an ever-growing list of Chinese chipmakers seeking public funding via shares sold on mainland markets, as tensions continue between China and the United States in regards to technology rivalry.
With this approval secured, Hua Hong is set to become one of the largest listings in China this year; however, details surrounding specific timelines or other aspects of their potential offering have not yet been disclosed publicly. Following news of their approved stock exchange plans, shares surged as high as 11% at HK$28.40 before settling back down slightly at a gain of 9.8%.
As a prominent semiconductor manufacturer specializing in creating products using 200mm wafers tailored towards niche applications across various sectors such as consumer electronics, communications and computing industries; securing additional funding will undoubtedly serve as a key stepping stone into further expansion efforts.
Guotai Junan Securities Co., along with Haitong Securities Co., are both coordinating arrangements for Hua Hong's forthcoming debut onto Shanghai’s Star board – marking another crucial milestone amid ongoing Sino-U.S tensions where technological prowess remains front-and-center within each nation’s bid for global supremacy.