Chinese electronics maker Bestek raises $89m in ChiNext IPO

Photo: Bestek website

Shenzhen Bestek Technology, a company that manufactures smart controller and electronic products, made its trading debut on Friday after raising 629 million yuan ($89 million) in an initial public offering (IPO) on the ChiNext board. 

Bestek, which initially filed its prospectus on March 3, sold a total of 26.67 million common shares at a price of 23.57 yuan ($3.35). It opened at 28.28 yuan ($4.02), up 19.98 per cent. Its shares are listed under 300822.

Guosen Security was the principal underwriter of the deal.

Bestek, set up in 2010, is a global provider of intelligent electric products. It makes power inverters, power converters and surge protectors, among other products.

It primarily earns its revenue from power controller products, which generated 83.15 per cent of its annual revenue of 737 million yuan ($105 million) in 2019. It booked net profits of 144 million yuan ($20.5 million), a jump of 46 million yuan ($6.6 million) over the previous year, according to the prospectus. 

The company’s top clients include Amazon, power devices producer Techtronic Industries, electric motor company Chiaphua Components Group, Costco, QVC, and BJs. 

Bestek has five subsidiaries, namely Guangdong Bestek Technology, Artmoon Technology, Shenzhen Xiaoyu Investment, Bestek Electronics (Hong Kong), and Bestek Electronics (Vietnam). 

Taiping Dingsheng Investment is the largest shareholder in Bestek with a 31.05 per cent stake, while the second-largest shareholder is Yilong Dake Capital, which owns a 29.43 per cent stake. 

Bestek will use the IPO proceeds for the development of its smart controller products, sprucing up its R&D centre and meeting its working capital requirements. 

Apart from Bestek, other prominent smart controller manufacturers in China include HK-listed Bestgk, SZ-listed Topband, SZ-listed HeT, SZ-listed Longood Intelligent, SZ-listed Hodgen, SZ-listed Intretech and SZ-listed Megmeet. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.