Shanghai approves IPO applications by nine pioneers on Nasdaq-style tech board
- Board also starts countdown to trading debut, expected to launch in mid-2019
- No e-commerce or internet-related firms in the running to list on new board
Shanghai’s upcoming Technology Innovation Board on Friday green lit the initial public offering applications of nine technology companies. The board, ordered by Chinese President Xi Jinping in November, began accepting listing documents on Monday and allowed the firms to proceed with their application process after a five-day review process.
The board, a Nasdaq-style market, also started a countdown to its trading debut, with regulators expecting to launch it in mid-2019. The companies given the go-ahead are from the fields of basic science, robotics, new material and chip making, with no e-commerce or internet-related firms in the running.
Amlogic, which focuses on designing integrated circuits, was the new technology board’s first IPO applicant.
“The companies show that the new board will aim to boost the real economy and help China to enhance its manufacturing might,” said Cao Hua, a partner at private equity firm Unity Asset Management. “To ensure initial success on the board, the first nine firms selected have solid fundamentals.”
The average market capitalisation of the chosen companies, which also include Beiren Robot, HeJian Technology (Suzhou) and Wuhan Keqian Biology, is estimated at 7.28 billion yuan (US$1.08 billion), the Shanghai Stock Exchange said in a statement.
Top venture capitalists and bankers land key role in deciding China’s tech board IPOs
The China Securities Regulatory Commission will allow a wide range of technology companies, including unprofitable firms, pre-revenue biotechnology start-ups and foreign-funded mainland businesses using variable interest entities structures, to raise funds on the new board.