Huahong Semiconductor Makes Historic Return to A-Share Market with Record-Breaking IPO
On 7 August 2023, Huahong Semiconductor, a red-chip company already listed on the Stock Exchange of Hong Kong (SEHK), made a significant move by officially returning to the A-share market and debuting on the Science and Technology Innovation Board (STB). The company issued approximately 408 million shares, increasing the total outstanding shares to 1.72 billion.
The total funds raised from this IPO amounted to RMB21.2 billion (USD2.94bn), with a net amount of RMB20.92bn after deducting issuance expenses. This marked the largest IPO in the A-share market in 2023 and the third-largest on the STB, following only SMIC and BeiGene. The issuance also attracted 30 strategic investors.
As the legal counsel for the issuer, Llinks Law Offices played a crucial role in providing legal services such as due diligence, feasibility analysis of the issuance program, legal opinions and reports, verification of legal documents, and responding to inquiries.
Huahong Semiconductor, a global leading pure-play foundry with speciality technologies, focuses on advanced “speciality IC + power discrete” offerings. The funds raised from the IPO will be invested in projects like the Huahong Manufacturing (Wuxi) project, the 8-inch wafer plant optimization and upgrading project, and speciality process technology innovation and R&D projects.
The return of Huahong Semiconductor to the A-share market required compliance with A-share rules for pre-listing enterprise verification and standardization, as well as navigating legal regulations, listing requirements, and regulatory statuses in both Hong Kong and Shanghai. Llinks Law Offices, with its experience in A-share IPOs and serving dual-listed companies, assisted Huahong Semiconductor in preparing for the A-share issuance process.
This historic move by Huahong Semiconductor aims to synergize domestic and international markets and resources, solidify its position as a global leader in speciality wafer foundry enterprises, and leverage the listing platform and capital market support for future growth and innovation.