Chinese intelligent manufacturing firm SK Automation raises $105m IPO

Source: Xi Wang/Unsplash

Shanghai SK Automation Technology, a Chinese developer of intelligent manufacturing equipment, has raised 733 million yuan ($105 million) in an initial public offering (IPO) on the country’s Nasdaq-style STAR Market on Tuesday.

SK Automation, whose initial price-to-earnings ratio (PE) stood at 47.74, offered 18.91 million shares at 38.77 yuan ($5.58) apiece.

Established in March 2007, SK Automation is into R&D, manufacturing, and sales of intelligent equipment for the production of medium and high-end automobiles and auto parts.

Its corporate clients include Hangzhou-based automotive firm Geely, Chinese state-owned automakers SAIC Motor and FAW Group, as well as CATL, a Shenzhen-listed manufacturer of lithium-ion batteries for electric vehicles.

The Shanghai-based company booked revenues of nearly 365 million yuan ($52 million) and a net profit of about 72 million yuan ($10 million) in 2019, according to its prospectus.

In January 2019, SK Automation completed an equity investment from investors including China-focused venture capital firm Kinzon Capital and SAIC Capital, a private equity arm of SAIC Motor, per Chinese business data platform Tianyancha.

SAIC Capital still owns a 3.35 per cent stake in SK Automation after the IPO, while Kinzon Capital holds a combined 2.16 per cent stake through two affiliates.

Domestic equity investment firm Junsan Capital, an early backer of SK Automation, has a 7.23 per cent stake in the company.

Shares of SK Automation are listed under the symbol “688155.” Dongxing Securities served as the lead underwriter of the deal.

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.