SDIC-backed Semiconductor Firm Li-On Eyes $292m In Shanghai IPO

Chinese semiconductor chip supplier Hangzhou Li-On Microelectronics Co., Ltd, formerly known as Hangzhou Li-On Electronics, has kicked off its IPO subscription exercise as it seeks to raise as much as 1.997 billion yuan ($292 million) on the Main Board of the Shanghai Stock Exchange (SSE). 

Backed by Chinese state-owned State Development & Investment (SDIC), Li-On has offered up to 40.58 million common shares at 4.92 yuan ($0.7) apiece, according to the board. Its shares have been oversubscribed 9,382 times. 

Li-On aims to invest the proceeds to spruce up the semiconductor chip development project. 

Since its inception in 2002, the Hangzhou-based Li-On has been engaged in green energy-driven semiconductor chips including wafers and discrete device chips that are used in telecom, consumer electronics, and automobile sectors.  

It clocked 649 million yuan ($95 million) in sales earning in the first half of this year, up 10.47 per cent than that of 2019, per its prospectus. 

Li-On’s founder and CEO Minwen Wang will remain the controlling shareholder having a 19.8751 per cent stake, while Lisi Group’s Ningbo Lisi Holdings will hold 6.8232 per cent interest. 

Post-IPO, SDIC will hold a 3.58 per cent stake in Li-On through its emerging economy-focused investment arm SDIC Gaoxin. SDIC had made an undisclosed strategic investment in Li-On back in 2017.

Hong Kong and Shanghai dual-listed Orient Securities is the lead underwriter for the deal, while Beijing-based China Securities acts as the joint underwriter. Li-On will float its shares under the symbol “605358”.