China foundry Nexchip raises 69hundred million8,000ten thousand Hong Kong dollars through a Hong Kong listing

China foundry Nexchip7 on 10was formally listed on the Hong Kong stock market and raised 69hundred million8000ten thousand Hong Kong dollars (about 1trillion3400billion won) through an IPO and new share issuance. The financing came as supply of mature-node, or legacy-process, capacity tightened.

The first day of trading opened at 32.30 Hong Kong dollars above the offering price, 11.46% higher at 36 Hong Kong dollars.

Intraday profit-taking pushed it down to 31.80 Hong Kong dollars before it closed at 32.30 Hong Kong dollars, the same as the offering price.

Market capitalization was 716Hong Kong dollars (13trillion7430billion won) and the company’s main product is 40nanometer or above mature-process semiconductors.

The company said the funds raised will be used to strengthen core research and development (R&D) capabilities, expand production capacity, make strategic investments in the industrial ecosystem and mergers and acquisitions, and broaden overseas sales and service networks.

It also said the funds will be used to develop next-generation 22nanometer process platforms, build AI-based R&D and production systems, and establish research and development and sales centers in Hong Kong.

The company said that in just 10years since its founding, it has grown into a world-leading foundry.

Market research firm Frost & Sullivan said Nexchip recorded the highest increases in production capacity and revenue growth during the 2020~2025period.

In the same survey, it was projected to rank No. 2025in global revenue by 9.