China Integrated Circuit Industry Investment Fund (CICF)-backed National Silicon Industry Group (NSIG) is seeking to raise as much as 2.4 billion yuan (approximately $341 million) in an initial public offering (IPO) on the Nasdaq-like STAR Market.
Shanghai-headquartered NSIG, which manufactures and distributes silicon products, plans to sell up to 620 million common shares at a price of 3.89 yuan ($0.55) apiece. Its market value is expected to exceed 3 billion yuan ($426 million) with the IPO, according to a filing with the Shanghai Stock Exchange.
Chinese Haitong Securities is acting as a principal underwriter of the deal.
Founded in 2015, NSIG is a joint venture set up by state-owned investment vehicles Guosheng Group, ICF and Shanghai Jiading Industrial Zone Development Group, besides Summitview Capital’s IC fund. Guosheng Group and ICF are the majority shareholders in NSIG, owning 30.48 per cent of stake, respectively.
NSIG is one of the largest providers of semiconductor silicon materials in the country. Its revenue derives from the flagship product 200mm-chip for four years in a row, counting for more than 77 per cent of earnings. The products are exported to North America, Europe, and other Asian regions.
The company’s top clients include US-based Global Foundries, the Netherland’s NXP Semiconductors, STMicroelectronics, New York and Hong Kong dual-listed Semiconductor Manufacturing International Corporation, HK-listed Huahong Group, state-owned CR Micro, Yangtze Memory Technologies, among others.
NSIG will allocate the IPO proceeds to expedite the R&D and commercialization of 300mm-chip, besides supplementing working capital.
Launched in 2014, the state-owned ICF is a semiconductor-focused fund with a target to advance self-reliance in high-tech sectors. Ministry of Finance, China Development Bank Capital, China Tobacco, Beijing E-Town International Investment & Development, and China Telecom are the largest shareholders. In July 2019, ICF had raised 200 billion yuan ($29 billion) in its second financing round to fuel the domestic chip industry.