Chinese Electronics Maker Bestek Raises $89m In ChiNext IPO

Shenzhen Bestek Technology, a company that manufactures smart controller and electronic products, made its trading debut on Friday after raising 629 million yuan ($89 million) in an initial public offering (IPO) on the ChiNext board. 

Bestek, which initially filed its prospectus on March 3, sold a total of 26.67 million common shares at a price of 23.57 yuan ($3.35). It opened at 28.28 yuan ($4.02), up 19.98 per cent. Its shares are listed under 300822.

Guosen Security was the principal underwriter of the deal.

Bestek, set up in 2010, is a global provider of intelligent electric products. It makes power inverters, power converters and surge protectors, among other products.

It primarily earns its revenue from power controller products, which generated 83.15 per cent of its annual revenue of 737 million yuan ($105 million) in 2019. It booked net profits of 144 million yuan ($20.5 million), a jump of 46 million yuan ($6.6 million) over the previous year, according to the prospectus. 

The company’s top clients include Amazon, power devices producer Techtronic Industries, electric motor company Chiaphua Components Group, Costco, QVC, and BJs. 

Bestek has five subsidiaries, namely Guangdong Bestek Technology, Artmoon Technology, Shenzhen Xiaoyu Investment, Bestek Electronics (Hong Kong), and Bestek Electronics (Vietnam). 

Taiping Dingsheng Investment is the largest shareholder in Bestek with a 31.05 per cent stake, while the second-largest shareholder is Yilong Dake Capital, which owns a 29.43 per cent stake. 

Bestek will use the IPO proceeds for the development of its smart controller products, sprucing up its R&D centre and meeting its working capital requirements. 

Apart from Bestek, other prominent smart controller manufacturers in China include HK-listed Bestgk, SZ-listed Topband, SZ-listed HeT, SZ-listed Longood Intelligent, SZ-listed Hodgen, SZ-listed Intretech and SZ-listed Megmeet.