Hua Hong Semiconductor Ltd., a leading Chinese chipmaker, has received approval from the Shanghai Stock Exchange to list its shares publicly on the city's STAR Market. The company intends to raise up to 18 billion yuan ($2.60 billion) through this move in order to fund investment and drive innovation, joining an expanding roster of Chinese chipmakers that have gone public amid increasing Sino-U.S. rivalry.
The bourse's listing committee approved Hua Hong Semiconductor Ltd.'s plans and the firm is now set to submit an application for registration with China's securities regulator. With a potential valuation of 18 billion yuan ($2.6 billion), this second listing could be one of China’s largest share sales this year.
Upon receiving approval, shares saw an initial surge by as much as 11% at HK$28.40 before settling down at a gain of 9.8%. As it stands, no timeline or specific details about the upcoming offering have been disclosed.
Hailing from Hong Kong, Hua Hong produces semiconductors utilizing 200mm wafers specifically designed for specialty applications across multiple industries like consumer electronics, communications, and computing sectors.
"Receiving Shanghai Stock Exchange approval marks a significant milestone for our business expansion," said Jack Wang Jinbao, CEO of Hua Hong Semiconductor Ltd., "We look forward to leveraging these additional resources towards continued growth and market leadership."
Guotai Junan Securities Co., along with Haitong Securities Co., are managing arrangements related to Hua Hong’s anticipated debut on the Shanghai STAR Market – further cementing its position among top-tier competitors within mainland China while concurrently fostering strategic investments in technology development domestically.
As tensions between China and the United States continue escalating over technological prowess domination in areas such as chips production capabilities; homegrown companies like Hua Hong Semiconductor Ltd. are positioning themselves to capitalize on this geopolitical climate by seeking out opportunities for growth and innovation within the mainland market.
"China's focus on developing its domestic semiconductor industry has created an environment conducive to rapid innovation, making it an attractive destination for investors," said Dr. Liu Jingyan, a technology analyst at Guotai Junan Securities Co., "Hua Hong's decision to list shares in Shanghai is a testament to the potential of China's homegrown chipmakers as they strive to meet rising demand from both global markets and local consumers."