Chip-tool maker Hwatsing raises $564M in A-share placement
What's the deal? China's Hwatsing TechnologyDealroom has a profile for this one. Try Dealroom → has raised US$518.4M through a post-IPO share placement, issuing 16.08 million new shares at US$32.5 each. Thirteen institutions took part, including public fund managers Yifangda (E Fund)Dealroom has a profile for this one. Try Dealroom → and China Asset ManagementDealroom has a profile for this one. Try Dealroom →, and international investors JPMorgan, Morgan Stanley, and UBS.
What's the money for? Hwatsing, which makes semiconductor-manufacturing equipment, will direct the proceeds to three projects: an integrated-circuit equipment R&D and production base in Shanghai, expanded wafer-reclaim capacity, and advanced chip-equipment development.
Why now? The placement follows Hwatsing's April decision to drop a planned Hong Kong listing and instead pursue up to US$550M via an A-share issuance. The US$518.4M raised lands near that original ceiling.
By the numbers: The round ranks in the 95th percentile by size among 121 comparable post-IPO equity raises in China's engineering and manufacturing equipment sector over the trailing 48 months. The new shares carry a six-month lock-up, and the deal does not change control; Sichuan's state-asset regulator remains the ultimate owner.
What could go wrong? Hwatsing reported first-half 2026 revenue growth of about 36%, but net profit rose more slowly, around 11%. The raise also dilutes existing holders, and shares fell 3% — a sign investors are weighing those costs against the growth case.
The signal: The raise reflects China's drive to localise its chip supply chain, with domestic equipment makers scaling up as homegrown chipmakers ramp production. Choosing an A-share placement over a Hong Kong listing underscores where Chinese hardware firms are now finding capital.
Read more: hk.marketscreener.com
Image credit: Kitmondo.com
