Xiaomi Fund-backed VeriSilicon Seeks To Raise $267m In STAR Market IPO

VeriSilicon Microelectronics (Shanghai) Co., Ltd is seeking to raise as much as 1.87 billion yuan ($267 million) in an initial public offering (IPO) on Shanghai’s Nasdaq-style STAR Market, according to a company filing. 

Backed by Chinese global electronics giant Xiaomi Corporation, VeriSilicon intends to offer 48.31 million common shares at 38.53 yuan ($5.5) apiece. The company kicked off the subscription exercise on August 7, and its shares have been oversubscribed 4,335 times. 

With the IPO proceeds, the company will look at product and platform development and setting up a research centre. 

State-backed China Merchants Securities is the principal underwriter for the deal, and Shanghai-based Haitong Securities is acting as its co-underwriter. VeriSilicon will float the shares under the symbol “688521”. 

VeriSilicon’s products serve the consumer electronics, automotive, data analysis and management, and I0T sectors.

The company registered earnings of 303 million yuan ($44 million) as of March 2020, up 11.92 per cent compared to the previous year. As of December 2019, its assets under management stood at 1.50 billion yuan ($215 million), per its prospectus. 

Post the IPO, VeriSilicon promoters will retain 16.11 per cent stake while Hong Kong-listed Wealth Strategy Holdings will hold 8.65 per cent interest. 

Its other key shareholders include state-owned The National Integrated Circuit Industry Investment Fund (7.18%), Intel’s Intel Capital (2.11%), and Xiaomi’s Hubei Xiaomi Changjiang Industrial Fund (5.62%).

VeriSilicon has also been backed by Samsung’s Samsung Venture Investment, Walden International, semiconductor focused Shanghai Xing Cheng Investment Management, VantagePoint Venture Partners, SunIC Capital, Shanghai Juntong Equity Investment Management, among others.