Key Takeaways:
Hefei Jinghe Integrated Circuit Co., Ltd. received approval from China’s securities regulator to proceed with a Hong Kong initial public offering of up to 248,592,000 shares.
The filing notice, released by the China Securities Regulatory Commission (CSRC) on May 22, confirms the regulator has greenlit the overseas listing plan for the Hefei-based semiconductor foundry.
The approval allows Jinghe Integration (晶合集成) to issue new ordinary shares and list on the Main Board of the Hong Kong Stock Exchange. Details regarding the offer price, deal size, and a specific listing date were not yet disclosed in the filing. The company's proposed ticker for the listing is also pending announcement.
This approval provides a critical channel for Jinghe Integration to access international capital, which is essential for the high-cost semiconductor manufacturing industry. The funds are expected to fuel the company's capacity expansion and investment in advanced process technologies, increasing its competitiveness against other foundries.
The move comes as Chinese regulators maintain a clear, albeit strict, pathway for domestic companies seeking overseas listings. While the CSRC recently outlined a plan to crack down on illegal cross-border securities activities, according to a Reuters report, Jinghe's approval highlights the viable, regulated route for firms that meet listing qualifications. This may be viewed as a positive signal for other Chinese technology companies considering IPOs in Hong Kong.
The approval gives the company an enterprise value that will be tested by institutional demand once a price is set. Investors will now watch for the release of the official IPO prospectus, which will detail the valuation and cornerstone investors, ahead of a listing date expected later this year.
This article is for informational purposes only and does not constitute investment advice.
