First International Computer plans to spin off its printed circuit board operation in the mainland through a listing on the Hong Kong main board early next year.
3Cems Group, in which the Taiwan-listed firm had a stake of more than 60 per cent, aimed to raise about $200 million, sources said. DBS Asia Capital is leading the deal.
Established in 1997, 3Cems provides electronics manufacturing services at its factories in Guangzhou. It makes printed circuit boards for computers, cellphones and other communications products, as well as consumer products.
'The company has and will continue to take the advantage of the outsourcing trend in China, with many global names turning to China for low-cost production,' a market source said.
Earlier this year, the company spent US$100 million setting up two factories in the Guangzhou free trade zone to enhance its research and development of high-density interconnected printed circuit boards, computers, notebooks, liquid-crystal display monitors and computer software.
The two operations increased the number of 3Cems' production facilities within the zone to six.