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todayonline - 1 month ago

Cambricon to raise $367.8 mln in IPO amid Chinese chip fever

SHANGHAI, July 6 - AI chipmaker Cambricon Technologies Corp said it will raise 2.58 billion yuan ($367.76 million) in its Shanghai initial public offering after pricing the listing at 64.39 yuan a share. Chipmakers like Cambricon are lining up to list in China, seeking to exploit a bullish market and strong investor appetite for a sector crucial to Beijing s rivalry with Washington for technology supremacy. The announcement comes days after Chinese chipmaker Semiconductor Manufacturing International Corp (SMIC) said it would raise $6.6 billion, in what will be the world s biggest listing so far this year, based on Refinitiv data. Cambricon s IPO price tag values the company at 58.03 times its 2019 sales based on the post-IPO capital base. That compares with an average price-to-sales ratio of 34.54 for five China-listed peers,according to the exchange filing. Companies turned to Shanghai s one-year-old tech-heavy STAR Market to raise $6.96 billion via listings in the first half. This dwarfed Shanghai s main board and has made STAR Market the world s second-biggest IPO venue,trailing only Nasdaq,where companies raised $15.5 billion in the first half, based on Refinitiv data. China has been stepping up capital market reforms amid tech-related tensions with the United States. The official China Securities Journal said on Monday China s economy was recovering, while its capital markets are undergoing reform and attracting money from home and abroad, setting the scene for a healthy bull market. Cambricon is offering 40.1 million new shares, and will use the IPO proceeds to fund three chip projects and to replenish working capital. The company s net loss ballooned to 1.18 billion yuan in 2019, from 41 million yuan a year earlier, although its revenue more than tripled to 443.9 million yuan, the company s prospectus said. REUTERS

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