ESWIN launches US$302.2M Hong Kong IPO with $320M target
What's the deal? Beijing ESWIN Computing Technology has launched a Hong Kong IPO, aiming to raise up to US$302.2M. The Chinese chipmaker is selling 1.57 billion H-shares priced as high as US$0.19 each.
Why now? The offer price is set to be finalised by October 7, with allocations expected October 8 and trading planned to start October 9.
Who's backing it? Nine cornerstone investors have committed $1.16 billion in subscriptions, giving the offering pre-committed demand ahead of pricing. Cornerstone investors are large buyers that agree to purchase shares before allocation.
What's the endgame? ESWIN plans to use the proceeds to fund its next phase of product development. That spans human-machine interaction and multimedia processing chips, plus upgrades to its hardware-software platform.
The signal: Chinese chipmakers are increasingly turning to Hong Kong's public markets to fund development, and heavy cornerstone backing signals investor appetite for the sector despite a tight listing timeline.
Read more: finimize.com
Image credit: jurvetson
