Chinese telecom software firm AsiaInfo Technologies has raised HK$865.3 million ($110.6 million) from its debut on the Hong Kong Stock Exchange, excluding the over-allotment option.
The company’s initial public offering included more than 83.65 million international offered shares and nearly 2 million Hong Kong offered shares, each at the price of HK$10.5.
The shares initially offered under the Hong Kong public offering had been undersubscribed, while the international offering had been over-subscribed, the company said in a filing.
The unsubscribed shares have been reallocated to the international offering.
Cornerstone investors in the IPO transaction included search engine giant Baidu, Lenovo Manufacturing, Shanghai WonderTek Software and Crotona Assets Limited, who have collectively picked up approximately 6.27 per cent of AsiaInfo upon completion of the global offering.
None of the cornerstone investors will have any board representation in the company.
The Beijing-based firm added that it will allocate around 35 per cent of the net proceeds, HK$302.9 million, to enhance internal R&D capabilities and expand market share in the emerging data-driven operation services, IoT and intelligent network markets.
Another 30 per cent will be earmarked for repaying a portion of the company’s outstanding loans, and about 25 per cent will be used to selectively pursue strategic investments and acquisitions. The remaining 10 per cent will be used for working capital and other general corporate purposes.
Founded in 1993, AsiaInfo has been developing products and services dedicated to the telecom industry. The company claimed a 25.3 per cent market share in terms of 2017 revenue. It said it had over 200 telecom operator customers, including China Mobile, Chinese Unicom and China Telecom’s headquarters, provincial companies, municipal companies, specialised companies and joint ventures, as at the end of June 2018.
Currently, AsiaInfo is expanding into AI, big data and IoT, having served 32 enterprise customers in the cable TV, postal and financial services industries. It has recently announced a strategic partnership with Baidu in developing new technologies.
AsiaInfo was listed on Nasdaq in 2000. Four years later, a CITIC Capital Partners-led consortium completed an $890-million buyout, leading to privatisation of AsiaInfo. It subsequently got delisted from the US stock exchange.