Following its initial public offering on the Shanghai Stock Exchange, Foxconn Industrial Internet Co (FII, 富士康工業互聯網), a subsidiary of Hon Hai Precision Industry Co (鴻海精密), has been widening its lead over its parent company in terms of market capitalization.
FII shares yesterday rose 10 percent to 23.99 yuan in Shanghai trading after a similar increase a day earlier, marking the third consecutive session of such increases following their debut on the Shanghai Stock Exchange on Friday last week.
With the latest increase, the company’s market capitalization reached 471.8 billion yuan (US$73.7 billion), up from about 430 billion yuan the previous day.
In Taipei, Hon Hai shares yesterday rose 0.34 percent to close at NT$87.70, which translated into a market capitalization of NT$1.52 trillion (US$50.9 billion), up from NT$1.515 trillion the day before.
FII’s lead over Hon Hai in terms of market capitalization yesterday widened to NT$670 billion from NT$485 billion on Monday, the figures show.
FII shares have risen about 74 percent from the issue price of 13.77 yuan in the three trading sessions since their debut.
FII’s market value ranked No. 11 among all yuan-denominated A-shares listed on the Shanghai and Shenzhen exchanges.
A foreign brokerage issued a target price of 24.6 yuan for FII shares, saying that the shares would continue to rise.
Financial Supervisory Commission Chairman Wellington Koo (顧立雄) on Monday told reporters that he did not care so much about the widening gap between FII’s and Hon Hai’s market value, but he cared about whether Hon Hai is moving some major businesses and repackaging them for FII, a move that he said could erode the parent company’s operations.
FII late last month established a strategic partnership with a group of Chinese enterprises to which it issued new shares.
Alibaba Group Holding Ltd (阿里巴巴), Baidu Inc (百度) and Tencent Holdings Ltd (騰訊) are among FII’s Chinese partners.
FII’s initial public offering raised 27.12 billion yuan, which Hon Hai said would be used for investing in its new software-based areas of interest in China.
Hon Hai has a 84.8 percent stake in FII, which lists Apple Inc, Amazon.com Inc, Dell Inc, Arris International PLC, Huawei Technologies Co (華為) and Lenovo Group Ltd (聯想) among its clients.
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