Foxconn Industrial Internet (FII), a subsidiary of Taiwanese electronics contract manufacturing giant Foxconn Group, is seeking to raise up to 27.1 billion yuan (US$4.26 billion) for its planned listing on the Shanghai Stock Exchange.
In what would be mainland China’s biggest IPO in almost three years, FII is offering up to 1.97 billion shares at 13.77 yuan per share, Reuters reports, citing a filing with the Shanghai bourse.
The Foxconn unit, which makes electronic devices, cloud service equipment and industrial robots, is putting up 10 percent of its enlarged capital for sale in the IPO.
Bookbuilding will begin on Thursday.
Foxconn Group, formally known as Hon Hai Precision Industry, has signaled previously that FII will launch projects in areas including smart manufacturing, industrial internet, cloud computing, and fifth-generation wireless technologies.
The IPO is also a reflection of Beijing’s seriousness in luring tech giants onto mainland exchanges, Reuters noted.
At about US$43 billion, FII’s valuation would not be far behind parent company Foxconn’s market capitalization of about US$49 billion.
FII plans to sell 30 percent of its public share offering to a group of strategic investors in a rare move for mainland deals.
The group will function as cornerstone, though not being labeled as such, with their investments tied up for between one and three years.
In an additional unusual move, 70 percent of institutional investors’ allocated shares will also be locked up for 12 months, Reuters added in its report.
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