Foxconn to raise $4.3bn in China’s biggest IPO since three years
Category: #world  By Saipriya Iyer  Date: 2018-05-28
  • share
  • Twitter
  • Facebook
  • LinkedIn

Foxconn to raise $4.3bn in China’s biggest IPO since three years

The USD 4.3 billion fund-raising round of Foxconn Industrial Internet (FII), a division of Foxconn Technology Group in China has attracted investments from three reputed internet giants including Baidu Inc., Alibaba Group, and Tencent Holdings from the country.  For the record, this round is one of biggest initial public offerings in China after 2015.

Analysts are of the view that the move will help Tencent & Alibaba expand their cloud computing business, while simultaneously helping all three firms in maximizing their operations across the automotive tech industry. The strategic move is also reportedly aimed at smart production, 5G technology, and cloud computing tools.   

Reportedly, each of these three big Chinese tech firms has received nearly 21.78 million stocks, thereby acquiring a major part of the ownership in the firm. As per some of the key officials of Foxconn Industrial Internet, around twenty investors in the region were allotted 590.8 million shares, approximately thirty percent of the total offering size. They have further announced that the stocks allotted to Tencent, Baidu, and Alibaba were worth USD 47 million each with a lock-in period of nearly 3 years. The firm also aims to sell 30% of its public share offering to investors in what may seem to be a not-so-common move with regards to mainland deals.

Foxconn Industrial Internet wants to issue nearly over 1.97 billion stocks of type A – that is around 10% of its enlarged capital. Experts believe that the FII will utilize the proceeds from the stock sale to fund nearly twenty ventures across eight fields, encompassing industrial internet, smart manufacturing tools, and data centers.

Experts claim that this IPO reflects the will of the Chinese entrepreneurs to attract tech giants towards the country for investments. As per Reuters, the IPO pricing displays 17 times the historical earnings of FII – quite lower than that of the evaluation cap of twenty-three times favored by the authorities of China.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

Read More

More News By Saipriya Iyer

Foodics enters Egypt market by setting an on-ground presence in Cairo
Foodics enters Egypt market by setting an on-ground presence in Cairo
By Saipriya Iyer

Saudi Arabia-based restaurant management platform Foodics, has announced that it has entered the Egyptian market by creating an on-the-ground presence in Cairo.  The expansion comes after the company raised USD 4 ...

Food Emulsifiers Market to Witness an Appreciable Growth By 2026
Food Emulsifiers Market to Witness an Appreciable Growth By 2026
By Saipriya Iyer

This advanced report on the Food Emulsifiers Market includes of an in-depth overview of this business sphere. Alongside, details of the present market size and status have been given. The report aims to provide substantial updates on the market, p...

Bharat Biotech reveals positive data from animal trial of Covaxin
Bharat Biotech reveals positive data from animal trial of Covaxin
By Saipriya Iyer

Bharat Biotech, an Indian biotechnology company, has reportedly revealed positive results from the animal trial of Covaxin, India’s COVID-19 vaccine candidate.

In the animal t...