TECH STOCKS
Hong Kong IPOs hit record
Hong Kong’s red-hot market for technology listings has already surpassed the heady days of the dot-com boom. Fundraising from tech-related initial public offerings in the city, led by ZhongAn Online P&C Insurance Co (眾安保險), has hit a record US$4.2 billion this year, data compiled by Bloomberg show. That is more than five times the amount raised in Hong Kong during the global dot-com boom in 2000. This year’s haul beats the previous record of US$2.9 billion set in 2004, when now-dominant Chinese Internet company Tencent Holdings Ltd (騰訊) first sold stock to the public. The next major deal to begin trading is to be Yixin Group Ltd (易鑫集團), a car-financing Web site that raised HK$6.8 billion (US$871.82 million) after pricing at the top of a marketed range, people with knowledge of the matter said.
WIRELESS
Vodacom data sales advance
Vodacom Group Ltd, Africa’s biggest wireless operator by market value, said revenue from data services surpassed voice for the first time in South Africa, as more customers switched to internet-enabled phones. First-half data sales advanced 15 percent to 11.4 billion rand (US$785.68 million) in Vodacom’s biggest market, accounting for 43 percent of service revenue, the Johannesburg-based company said in a statement yesterday. Helped by promotions, the wireless operator added more customers in South Africa and international markets such as Tanzania, it said. “We expect that data contribution in our international markets could surpass that of voice in the next five years or so,” chief executive officer Shameel Joosub said.
GAMING
Razer IPO sells 1bn shares
Razer Inc, the maker of computer accessories for hardcore gamers, jumped on its first day of trade after raising HK$4.1 billion in its initial public offering (IPO). The stock traded at HK$5.31 as of 9:33am yesterday, 37 percent above the HK$3.88 price in the IPO. The company sold 1.06 billion shares in the sale with the stock issued near the top of a marketed range of HK$2.93 to HK$4.00. San Francisco and Singapore-based Razer produces a suite of products for gaming enthusiasts, from computer mice to performance laptops. The company has expanded its lineup by launching a US$699.99 Android smartphone that is designed for gameplay.
INVESTMENT
Softbank seeks Uber stake
Japanese technology conglomerate Softbank has reached a deal with Uber to invest billions in the ride-hailing giant. Uber Technologies Inc confirmed the investment in a statement Sunday without giving details. However, a person briefed on the deal told reporters that Softbank Group is to buy about US$1 billion worth of new Uber stock, and then is to offer to purchase shares from investors and Uber employees with the goal of reaching a 14 percent stake in the company. Uber is currently valued at US$68.5 billion, but stock offers are to be based on a lower valuation, so it is unknown just how much the total multibillion-dollar deal will be worth, said the person, who spoke on condition of anonymity because details were not released. Uber’s statement said it reached an agreement with a consortium led by Softbank and Dragoneer Investment Group. The deal is a vote of confidence in the company’s potential and “will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance,” the statement said.
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)