Taiwanese electronics giant Foxconn Group plans to use proceeds from a Shanghai listing of one of its subsidiaries to fund eight projects totaling 27.3 billion yuan (US$4 billion), Reuters reports.
In January, Foxconn, formally known as Hon Hai Precision Industry Co, said its shareholders had approved a plan to list unit Foxconn Industrial Internet Co. (FII) on the Shanghai Stock Exchange.
In a prospectus filed with the China Securities Regulatory Commission late last Friday, FII said it will use the listing proceeds on eight projects.
The projects include smart manufacturing platforms, cloud computing services and 5G solutions, the company said, according to Reuters.
FII, which makes electronic devices, cloud service equipment and industrial robots, did not provide details on the size or timing of the IPO.
A Hon Hai unit, China Galaxy Enterprises, directly and indirectly owns 69 percent of FII that was founded in March 2015, according to the prospectus.
China International Capital Corp is the sponsor and lead underwriter for the IPO.
FII made a net profit of 16.2 billion yuan last year on revenue of 354.5 billion, according to the filing.
The company’s major clients include Amazon, Apple, Cisco, Dell, Huawei, Lenovo, Nokia and nVidia.
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