Zhen Ding Technology Holding Ltd (臻鼎), one of Taiwan’s leading flexible printed circuit board (PCB) suppliers, said its Shenzhen-based subsidiary has secured approval from Chinese authorities to launch an initial public offering (IPO) on the Shenzhen Stock Exchange.
Zhen Ding made the announcement of Avary Holding (Shenzhen) Co Ltd’s (鵬鼎控股深圳) A-share listing application result in a Taiwan Stock Exchange filing on Saturday.
“The IPO approval letter had been issued by the China Securities Regulatory Commission to the company’s subsidiary, Avary Holding (Shenzhen), on Aug. 24,” Zhen Ding said in the filing.
Cayman Islands-incorporated Zhen Ding is part of Apple Inc’s supply chain. The firm holds an 80.9 percent stake in Avary Holding, which produces high-density interconnection boards, flexible/rigid PCBs and other products in Huaian in Jiangsu Province and Qinhuangdao in Hebei Province. The unit reported net profit of 1.91 billion yuan (US$280.6 million) last year on sales of 23.92 billion yuan.
In the filing, Zhen Ding did not say when Avary Holding planned to start trading in Shenzhen, nor what its IPO price was.
Once Avary Holding becomes a publicly traded company later this quarter or early next quarter, it would be the second unit of Foxconn Technology Group (富士康科技集團) to launch an IPO in China this year, following Foxconn Industrial Internet Co (FII, 富士康工業互聯網), which made its Shanghai debut on June 8 at 13.77 yuan per share.
The group, known as Hon Hai Precision Industry Co (鴻海精密) in Taiwan, holds 38 percent shares in Zhen Ding and has an 85 percent interest in FII, which makes casing, networking, telecom, server and storage devices.
Hon Hai expects FII to tap into the growth of the Internet communication and cloud-based computing industries in China, extending from its business of hardware assembly.
Despite its high-profile debut in Shanghai, FII shares have tumbled more than 43 percent from its peak of 26.36 yuan on June 13, closing at 14.99 yuan on Friday.
Hon Hai has listed more than 20 of its subsidiaries in Taiwan and increased efforts to raise capital abroad in recent years.
The group now has five units listed in Hong Kong, one in China and one in Japan, with analysts saying they are part of Hon Hai’s strategy to increase overseas investment gains and expand its global reach.
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