Foxconn gets Shanghai’s nod in record time to raise US$4.3 billion in initial public offer
Unlike other applicants with a two-year wait to raise funds, Foxconn received its nod in five weeks, underscoring the regulator’s eagerness to attract technology companies to raise funds in its race for Asia’s IPO crown
Foxconn Industrial Internet, a unit of the world’s biggest contract manufacturer whose products include Apple’s iPhones, was put on the fast track for securing the nod by China’s securities regulator to raise capital through an initial public offering.
The unit of Taiwan’s Hon Hai Precision Industry has been approved by the China Securities Regulatory Commission to raise 27 billion yuan (US$4.3 billion) in an IPO, according to a notice by the regulator. Foxconn filed its stock-sale application on February 1.
The offer would be China’s biggest stock sale since the 30.6 billion yuan IPO by Guotai Junan Securities three years ago, putting it on path to become the largest technology company by market value on the mainland, with 500 billion yuan in market capitalisation expected after the listing, analysts said.
“Foxconn will be the new darling of Chinese investors since it is supported by the government,” said Ivan Li, an asset manager with hedge fund group Loyal Wealth Management.