Hon Hai Precision Industry Co (鴻海精密) on Saturday confirmed that its Internet-focused subsidiary, Foxconn Industrial Internet Co Ltd (FII, 富士康工業互聯網), has received official authorization for an initial public offering (IPO) in Shanghai.
After the China Securities Regulatory Commission granted its official approval, FII was expected to consult with its financial advisers and underwriters to set an exact date and publish a prospectus for the listing.
FII is expected to launch an IPO on the Shanghai Stock Exchange at the end of this month or early next month to take advantage of an inclusion of yuan-denominated A-shares into global index provider MSCI Inc’s Emerging Markets Index later next month, analysts said.
The index is being closely watched by foreign institutional investors who are planning investments in emerging markets such as Shanghai.
FII is likely to set the listing price at 13.8 yuan, market sources said.
The company’s IPO application was submitted on Feb. 1 to the commission, which processed it on March 8 and granted its approval after only 36 days, catching the market off-guard, as the process usually takes about a year.
The quick review was an indication of China’s plan to lure high-tech firms, as it prepares to develop its technology and innovation sectors, dealers said.
However, the commission did not issue its official approval for the listing until Friday last week, because the IPO would absorb too much funding from the market based on FII’s original plan to raise 27.25 billion yuan (US$4.3 billion), Chinese media said on Saturday.
Reporters said it was possible that FII would agree to lower its goal in order to obtain official approval.
Hon Hai is expected to retain a 85 percent stake in FII after the IPO, the original prospectus showed.
FII’s investment in China is to focus on a wide range of new technologies, such as cloud-based computing, high-performance computing, 5G Internet communication solutions for industry, data centers and smartphone-related applications, Hon Hai said.
The listing would allow FII to tap the rapid growth of the Internet communication and cloud-based computing industries in China, Hon Hai said.
FII posted 15.87 billion yuan in net profit for last year, up 10.45 percent from a year earlier, while its sales grew 30 percent year-on-year to 354.54 billion yuan.
Its prospectus shows that its major clients include Amazon.com Inc, Apple Inc, Dell Inc, Arris International PLC, Huawei Technologies Co (華為) and Lenovo Group Ltd (聯想).
The top five clients accounted for more than 70 percent of FII’s revenue, the prospectus showed.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese prosecutors suspect that three people successfully smuggled at least one shipment of Nvidia Corp artificial intelligence (AI) chips to China after first exporting them to Japan, people familiar with the matter said. The trio was detained last week by the Keelung District Prosecutors’ Office for allegedly falsifying documents related to exports of Super Micro Computer Inc servers containing advanced Nvidia chips, which the US has barred from sale to China without a license from Washington. The move marked Taiwan’s first public crackdown on AI chip diversion after years of pressure from the US to take a more active role in curtailing
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employee bonuses are likely to grow more than 30 percent this year, in line with the past few years as the company’s profits continue to set new records, an anonymous source cited TSMC chairman C.C. Wei (魏哲家) as saying yesterday. TSMC, the world’s largest contract chipmaker, is committed to taking care of its workers, the source said, citing Wei’s meeting with employees yesterday morning. Wei also expressed gratitude to employees for their contribution to the company’s improving bottom line, the source added. Since 2023, TSMC’s employee bonuses have grown at an annual rate of
RSS