By Yifan Wang
Hua Hong Semiconductor shares rose in their Shanghai debut on Monday, after the Chinese chipmaker raised close to $3 billion in the country’s largest initial public offering so far this year.
The stock has gained as much as 15% and was last up 3.9% at 54.00 yuan (US$7.53) a share.
Hua Hong has sold 407.75 million shares at CNY52.00 each, raising a total CNY21.20 billion in gross proceeds, making the deal the biggest share-sale on the A-share market so far this year.
The offering joined a host of Chinese chip makers that have gone public in recent months, as Beijing signals support for domestic semiconductor suppliers at a time of U.S.-China tech rivalry and geopolitical tensions.
Hua Hong, which designs and manufactures specialty process wafers, plans to use the IPO proceeds to invest in a new fabrication plant in eastern China and to upgrade a production line.
Write to Yifan Wang at [email protected]