China’s securities regulator has given the go-ahead to Taiwan’s Foxconn group, the world’s largest contract electronics manufacturer, to list a subsidiary on the Shanghai Stock Exchange.
The China Securities Regulatory Commission has approved the floatation of Foxconn Industrial Internet Co. (FII) in Shanghai, clearing the way for the firm to raise funds for new projects, Reuters reports.
FII, an internet and industrial-focused unit of Foxconn, had sought a China listing to help fund projects in smart manufacturing, cloud computing and 5G solutions.
Foxconn group said previously that around 10 percent of FII’s shares would be converted to floating stock, with the parent entity holding onto around 85 percent of the shares.
Shareholders of Foxconn, formally known as Hon Hai Precision Industry Co., approved the plan in January.
The group is yet to announce details of the planned IPO.
Last month, Foxconn said it planned to use proceeds from the unit’s listing to fund eight projects totaling 27.3 billion yuan (US$4.31 billion).
The subsidiary, which makes electronic devices, cloud service equipment and industrial robots, made a net profit of 16.2 billion yuan in 2017.
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