Chinese Telecom Equipment Firm Consys Seeks To Raise $298m In STAR Market IPO

Shenzhen Consys Science & Technology Co., Ltd, manufactures and distributes telecommunications equipment, is looking to raise around 2 billion yuan (about $298 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-styled STAR Market. 

The company, which kicked off its subscription exercise on Friday, offers 18.88 million shares at 106.04 yuan ($21.20) apiece, according to a company filing with the bourse. 

After the IPO, Consys will invest the proceeds to build its manufacturing bases and R&D centres. A part of the money it plans to keep as its operating funds.  

Shenzhen-listed Zhongtian Finance’s subsidiary ZTF Securities is serving as the lead underwriter for the deal. Consys will float the shares under the symbol “688788”. 

Consys, which was set up by Jiande Liu in Shenzhen, is a specialist in telecommunication hardware, and caters to military and defense industries. Its electronic information technology-driven products are widely used in surveying and mapping applications, among others.

The company’s top clients include a slew of state-owned groups such as China Electronics Technology Group, China North Industries Group, China Aerospace Science & Industry, and China Electronics Corporation, among others

According to the prospectus, its annual revenue over the past three years stood at 674 million yuan in 2019, 551 million yuan in 2018, and 337 million yuan in 2017. 

Baoan had exclusively invested in Consys in its pre-Series A round in 2016. Subsequently, CDF-Capital had teamed up with Xiamen state-owned fund to make an investment in Consys in 2019.