Hon Hai Technology Group’s (鴻海科技集團) printed circuit board (PCB) Chinese subsidiary, Avary Holding (Shenzhen) Co Ltd (鵬鼎控股深圳), is to debut its shares on the Shenzhen Stock Exchange tomorrow after receiving Chinese regulatory approval on Aug. 24 for its initial public offering (IPO).
Avary Holding, which commands 50.53 percent of the world’s PCB market, plans to offer 231 million new shares at a listing price of NT$16.07 per share, according to a company filing with the China Securities Regulatory Commission.
The company is valued at 22.99 times its earnings, the filing said.
Only 0.12 percent of potential investors successfully subscribed to the Avary Holding shares, underwriter Huatai United Securities Co (華泰聯合證券) said in a separate filing with the commission.
Avary Holding raised 3.71 billion yuan (US$540.4 million) through the IPO, Huatai United’s filing showed.
The company plans to use the proceeds to expand flexible PCB capacities in Jiangsu Province and to boost high-density interconnector capacity in Hebei Province, the company’s prospectus said.
Shares are to be traded on the Small and Medium Board of the Shenzhen Stock Exchange with ticker number 002938.
The Shenzhen-based company will have 2.31 billion capital shares in total after the debut, it said.
Avary Holding, which supplies PCBs for Apple Inc’s iPhones, will be the second unit of Hon Hai Group to launch an IPO in China this year, following Foxconn Industrial Internet Co (富士康工業互聯網), which made its Shanghai debut on June 8 at 13.77 yuan per share.
Avary Holding is 80.91 percent owned by Zhen Ding Technology Holding Ltd (臻鼎) through Hong Kong-registered entities Mayco Industrial Ltd (美港實業) and Pacific Fair International Ltd (集輝國際).
Hon Hai holds about a 38 percent stake in Zhen Ding.
Avary Holding saw net profit surge 83 percent to 1.83 billion yuan last year from 1 billion yuan in 2016, with earnings per share growing from 0.75 yuan to 0.82 yuan.
Its revenue jumped 39.56 percent to 23.92 billion yuan from 17.14 billion yuan a year earlier.
In the first three quarters of the year, net profit is forecast to grow between 50.9 and 65.65 percent annually to between 1.27 billion yuan and 1.4 billion yuan, and revenue could increase between 21.52 and 29.26 percent to between 16.32 billion yuan and 17.36 billion yuan, Huatai United Securities said.
Hon Hai has listed more than 20 of its subsidiaries in Taiwan and has been seeking to raise capital overseas in recent years, including five units listed in Hong Kong, one in China and one in Japan.
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