Hua Hong Semiconductor Plans to Raise Close to $3.0 Billon in Chinese IPO

By Sherry Qin

Chinese chipmaker Hua Hong Semiconductor plans to raise 21.20 billion yuan ($2.95 billion) through an initial public offering on Shanghai’s STAR board on Tuesday.

Hua Hong aims to sell 407.75 million shares at CNY52.00 each, the company said in an exchange filing on Sunday.

The company, which designs and manufactures specialty process wafers, plans to use the proceeds from the IPO to invest in a new fabrication plant in Wuxi in eastern China and upgrade its 8-inch production line.

Several Chinese chip companies, including Motorcomm Electronic Technology and Lontium Semiconductor, have recently gone public to boost their businesses amid the technology rivalry between China and the U.S. China accounts for one-third of global chip sales and is a linchpin in the semiconductor supply chain.

Hua Hong, which is China’s second-largest foundry, reported record revenue of $2.48 billion in 2022, up 52% from the previous year, supported by higher average selling prices of products. Its first-quarter net profit was $152.2 million, compared with $102.9 million a year earlier.

Hua Hong’s shares in Hong Kong are up 0.40% at HK$25.40.

Write to Sherry Qin at [email protected]

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