Foxconn Industrial Now China’s Most Valuable Tech Firm Listed on Mainland
Foxconn Industrial Internet Co. Ltd., which makes cloud service equipment and industrial robots, has become China’s most valuable domestically listed tech company after its shares surged 44% in its trading debut in Shanghai on Friday.
Shares of Foxconn Industrial, a unit of the manufacturing giant Hon Hai Precision Industry Co. Ltd., rose 20% to 16.52 yuan ($2.58) during the pre-trading session on Friday morning. The stock surged further to notch a 44% gain as the market opened at 9:30 a.m., giving the stock a market capitalization of 390 billion yuan.
Its share price was then frozen at 19.38 yuan because shares are not allowed to rise beyond 44% on their first day of trading in China.
Foxconn Industrial raised 27 billion yuan in its initial public offering (IPO) in Shanghai at a price of 13.77 yuan. The stock was nearly 1,300 times oversubscribed.
The company said earlier that it would use the funds to upgrade production, such as improving smartphone manufacturing, as well as 5G and cloud computing projects.
Foxconn Industrial’s IPO was the quickest ever in China thanks to a Beijing campaign to promote high-quality companies, taking only 36 days to get the securities regulator’s approval.
The company posted a net profit of 15.9 billion yuan last year, up by 10.4% from a year earlier.
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