Chinese Semiconductor Firm 3Peak Looks To Raise $339m In STAR Market IPO

Chinese fabless semiconductor firm 3Peak Incorporated is looking to raise 2.31 billion yuan ($339 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market.

The company, which kicked off its subscription exercise on Wednesday, is offering 20 million common shares at 115.71 yuan ($16.93) apiece. The shares have been oversubscribed 4,608 times, the company said on Thursday.

3Peak will allocate the proceeds for analog products and tools, its research centre, and operating funds, it said.

Shanghai-based Haitong Securities is the principal underwriter for the deal. 3Peak will float the shares under the symbol “688536”.

3Peak, set up in 2012 and located in east China’s Suzhou city, produces high-performing and ultra-precision analog IC products and services. Its products are applied to a slew of industries such as medical equipment, automotive electronics, communication systems, information security, and industrial systems.

The company’s top clients include Samsung’s Harman, telecommunications and information technology player ZTE Corporation, IoT solutions provider Hikvision, and intelligent speech developer iFlytek.

3Peak clocked 302 million yuan ($44 million) in annual revenue in the first half of this year, a 211.45 per cent year-on-year growth, as per its prospectus. In addition, 3Peak’s assets under management stood at 286 million yuan ($42 million) in 2019.

Hoaxin Venture Partners, a semiconductor fund co-launched in 2011 by state-owned SDIC and SVIC No.28 New Technology Business Investment, will remain the largest shareholder in 3Peak with an 18.55 per cent stake. Other shareholders include Chinese tech giant Huawei Technologies’ investment arm Hubble Technologies (6.00%) and Oriza Holdings’ Oriza Hua (1.50%).

Hubble exclusively made an unspecified investment in 3Peak in July 2019. Oriza Hua along with Sunic Capital, Hua Ventures, and Shenzhen Huiyou Investment had together made an equity investment in the company in January 2019.