Chinas Leadshine Tech Lists At Premium On Shenzhen Bourse

Shenzhen-headquartered motion control products developer China Leadshine Technology Co., Ltd on Wednesday listed at a premium on the Shenzhen stock exchange after raising 510 million yuan ($72 million) in its initial public offering (IPO).

Leadshine, which filed for an IPO on March 25, sold up to 52 million common shares at 9.8 yuan ($1.4) apiece. The stock opened at 11.76 yuan ($1.7), up 20 per cent from the IPO price. 

HK-listed China Securities is the principal underwriter of the deal.

Leadshine provides high-tech motion control products for intelligent manufacturing industries. Its products are exported to countries across the world.   

Its products serve the electronic device, semiconductor, special machinery, inkjet printing, textile, logistics, automation, and medical device industries. 

Aside from Shenzhen, the company has set up over 30 divisions in the country. It also has a channel partner, MAS Auto Systems Pvt Ltd, in India. 

As of 2019, Leadshine generated an aggregate of 663 million yuan ($94 million) in annual revenue, up  11.19 per cent compared to the previous year. Its net profit was 113 million yuan ($16 million), up 31.93 per cent than that of 2018. 

Following the IPO, Weiping Li will remain its controlling shareholder and actual controller holding  35.77 per cent equity in Leadshine. Hesai Investment Management is the second-largest shareholder owning 8.78 per cent stake.

Hangzhou-based private equity firm Sinowisdom, which had made an undisclosed investment in Leadshine back in 2016, will hold 4.38 per cent stake after paring its holding by 1.45 per cent.