(Yicai Global) July 5 -- Shares in Advanced Micro-Fabrication Equipment surged as much as 13 percent today after the leading Chinese manufacturer of semiconductor equipment announced it had raised CNY8.21 billion (USD1.27 billion) in a private placement of shares with the Chinese and Singaporean governments among subscribers.

AMEC’s share price [SHA:688012] closed up 7.39 percent at CNY162.70 (USD25.20). Earlier in the day it had reached CNY171.33.

China’s National Integrated Circuit Industry Investment Fund pumped in the most at CNY2.5 billion (USD386.7 million) to become AMEC’s fifth-largest shareholder, Shanghai-based AMEC said at the weekend. Singapore’s sovereign wealth fund GIC Private injected CNY779 million (USD120.5 million).

Other participants included Hong Kong-based ICBC Credit Suisse Asset Management with CNY929 million (USD144 million), Switzerland’s UBS Group with CNY238 million and France’s BNP Paribas with CNY270 million, it added.

Priced at CNY102.29 (USD15.83) per share, investors have already made a 60 percent gain based on the company’s stock price today.

Investors believe that AMEC’s semiconductor etch devices, which are one of the key pieces of machinery needed to make integrated circuits, will be strongly promoted in the current lifecycle of the semiconductor sector, a private fund manager told Yicai Global.

As mature Chinese chipmakers gain more market share both at home and abroad, local manufacturers of equipment, packaging and testing devices all stand to benefit, he added.

The funds raised will be used in three areas, the company said. CNY3.76 billion (USD582 million) will be spent on building its new headquarters and a research and development center in the Lingang New Area, part of Shanghai’s free trade zone. CNY3.17 billion will go towards building new production facilities in the Lingang New Area and Nanchang, eastern Jiangxi province. The remaining CNY3.08 billion will be reserved for projects in the science and technologies.

Editors: Tang Shihua, Kim Taylor