Chinese Intelligent Manufacturing Firm SK Automation Raises $105m IPO

Shanghai SK Automation Technology, a Chinese developer of intelligent manufacturing equipment, has raised 733 million yuan ($105 million) in an initial public offering (IPO) on the country’s Nasdaq-style STAR Market on Tuesday.

SK Automation, whose initial price-to-earnings ratio (PE) stood at 47.74, offered 18.91 million shares at 38.77 yuan ($5.58) apiece.

Established in March 2007, SK Automation is into R&D, manufacturing, and sales of intelligent equipment for the production of medium and high-end automobiles and auto parts.

Its corporate clients include Hangzhou-based automotive firm Geely, Chinese state-owned automakers SAIC Motor and FAW Group, as well as CATL, a Shenzhen-listed manufacturer of lithium-ion batteries for electric vehicles.

The Shanghai-based company booked revenues of nearly 365 million yuan ($52 million) and a net profit of about 72 million yuan ($10 million) in 2019, according to its prospectus.

In January 2019, SK Automation completed an equity investment from investors including China-focused venture capital firm Kinzon Capital and SAIC Capital, a private equity arm of SAIC Motor, per Chinese business data platform Tianyancha.

SAIC Capital still owns a 3.35 per cent stake in SK Automation after the IPO, while Kinzon Capital holds a combined 2.16 per cent stake through two affiliates.

Domestic equity investment firm Junsan Capital, an early backer of SK Automation, has a 7.23 per cent stake in the company.

Shares of SK Automation are listed under the symbol “688155.” Dongxing Securities served as the lead underwriter of the deal.