Foxconn unit to sell shares today
A UNIT of electronics manufacturing giant Foxconn said it will launch an initial public offering in Shanghai today aimed at raising US$4.2 billion, in the biggest mainland debut in nearly three years.
Taiwan’s Foxconn Industrial Internet, which makes electronic devices, cloud service equipment and industrial robots, will float 10 percent of its total shares, according to a prospectus filed late Tuesday with the Shanghai stock exchange.
Taipei-based Foxconn, which is also known as Hon Hai Precision Industry Co, is the world’s largest electronics contract manufacturer, a major supplier of components and assembler of products by international brands such as Apple and Sony.
Foxconn Industrial Internet will issue 1.97 billion new shares at 13.77 yuan each to raise 27.1 billion yuan (US$4.2 billion).
The IPO will be the biggest in China’s mainland since a market crash in 2015 and one of the largest ever for the country’s stock exchanges.
In June 2015, Guotai Junan Securities raised over US$4.8 billion.
Foxconn said it will use the funds raised to upgrade its smart manufacturing, build Internet platforms to connect factories and invest in cloud computing and fifth-generation communication technologies in its mainland factories.
The IPO comes as the Chinese government is pushing to attract more listings on mainland markets by domestic technology companies.
Analysts say that push is part of broader plans to become a global tech leader.
Foxconn, which is one of China’s largest single employers, has around a million employees working at at its factories across the country, plus operations in more than 10 countries including Vietnam, Brazil and Mexico.