Chinese industrial internet of things (IIoT) solutions provider InHand Networks raised 362 million yuan ($52 million) in an initial public offering (IPO) on the STAR Market on Wednesday.
Beijing-based InHand Networks sold almost 13.11 million shares at 27.63 yuan ($3.96) apiece. Its shares commenced trading at 141.52 yuan ($20.30), or five times its issue price, giving it a market capitalization of about 7 billion yuan ($1 billion).
InHand Networks, founded in 2001 and incorporated as Beijing InHand Networks Technology Co Ltd, is as a manufacturer and provider of industrial communication products and IoT solutions such as intelligent gateways, industrial-grade routers, wireless data terminals, and sensors.
The company delivers products and services to clients in the fields of electric power, industrial automation, smart vending, smart city, transportation, and agriculture, among others. InHand Networks counts the State Grid Corporation of China, the Chinese national electric utility monopoly commonly known as the State Grid, as its second-largest client.
The company booked 124 million yuan ($18 million) in operating income and 22 million yuan ($3 million) in net profit in the first six months of 2019. It estimates that its annual operating income for the last year stood between 285 million yuan ($41 million) and 315 million yuan ($45 million), according to the company’s prospectus.
Chinese TMT-focused early-stage investment firm Flyfot Ventures picked up shares in InHand Networks after an equity investment in December 2017. Flyfot Ventures held a 2 per cent stake in the company before the IPO.
Shares of InHand Networks are listed under the symbol “688080.” Everbright Securities, a securities brokerage controlled by Chinese state-owned conglomerate China Everbright Group, served as the lead underwriter.