A unit of electronics manufacturing giant Hon Hai Precision Industry Co (鴻海精密) is today to launch an initial public offering (IPO) in China aimed at raising US$4.2 billion, in the biggest Chinese debut in nearly three years.
Foxconn Industrial Internet Co (FII, 富士康工業互聯網), which makes electronic devices, cloud service equipment and industrial robots, is to float 10 percent of its total shares, according to a prospectus filed late on Tuesday with the Shanghai Stock Exchange.
Parent Hon Hai is the world’s largest electronics contract manufacturer, a major supplier of components and assembler of products by international brands such as Apple and Sony.
Foxconn Industrial Internet is to issue 1.97 billion new shares at 13.77 yuan per share to raise 27.1 billion yuan (US$4.2 billion).
The IPO would be the biggest in China since a market crash in 2015 and one of the largest-ever for the nation’s stock exchanges.
Hon Hai said it would use the proceeds to upgrade its smart manufacturing, build Internet platforms to connect factories and invest in cloud computing and 5G technologies in its Chinese factories.
The IPO would be the largest in China since June 2015, when Guotai Junan Securities (國泰君安證券) raised more than US$4.8 billion.
The IPO comes as Beijing is pushing to attract more listings on mainland markets by domestic technology companies.
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion). Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9. While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
RSS