Foxconn Unit Plans to Raise USD4.2 Billion in China's Biggest A-share IPO in Three Years
Xu Wei
/SOURCE : Yicai
Foxconn Unit Plans to Raise USD4.2 Billion in China's Biggest A-share IPO in Three Years

(Yicai Global) May 23 -- Foxconn Industrial Internet Co. will realize tomorrow China's largest A-share initial public offering in almost three years as the company announced its IPO share price.

Shenzhen-based Foxconn Industrial [SHA: 601138], a unit of the world's largest contract manufacturer Foxconn Technology Group, formally known as Hon Hai Precision Industry Co., will issue about 1.97 billion shares at a price of CNY13.77 (USD2.15) per share in Shanghai to raise just over CNY27 billion (USD4.2 billion), it said in a stock exchange filing today. This will be the largest IPO record for China's A-shares since 2015. Bookbuilding for the IPO will kick off tomorrow.

The net proceeds after deducting the issuance cost of CNY400 million, will be about CNY26.7 billion, corresponding to a price-earnings, P/E, ratio of 17.09 times.

By the total fundraising amount, Foxconn Industrial, which makes industrial robots and electronic devices, will rank 12th on the list of all A-Share IPOs in history. It comes at a time when the central government encourages tech giants to list on the mainland markets. It will also bring the company's market valuation to USD43 billion as it offers 10 percent of its enlarged capital in the IPO,

Unicorns WuXi AppTec Group and Contemporary Amperex Technology Co. have encountered different degrees of "shrinkage" in their IPO proceeds. The final proceeds to be raised by Foxconn Industrial, however, are basically the same as the total amount of proceeds-funded projects previously unveiled in its IPO application.

Editor: Mevlut Katik

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Keywords: FOXCONN , FII , IPO , A-Share Market , Initial Public Offering , Shanghai Stock Exchange