Dec 09, 2019 07:25 PM

First Acquisition Lights Up New High-Tech Board

HYC’s stock closed 20% higher on Monday, bringing its valuation to 15.8 billion yuan. Photo: IC Photo
HYC’s stock closed 20% higher on Monday, bringing its valuation to 15.8 billion yuan. Photo: IC Photo

The Chinese manufacturer of display and touch testing equipment, Suzhou HYC Technology Co. Ltd., said it would buy rival Suzhou Olyto Automation Technology Co. Ltd. for 1.15 billion yuan ($163 million).

Some 70% of the investment will take the form of HYC issuing new shares to Olyto shareholders, with the remainder to be paid in cash, the company said in a statement (link in Chinese) to the Shanghai Stock Exchange over the weekend. The newly-issued shares used for the deal will be sold at 26.05 yuan apiece, representing a 21% discount of HYC’s closing price on Friday.

Founded in 2005 and based in East China’s Jiangsu province, HYC makes industrial testing equipment, supplying products in areas that include semiconductors, new-energy automotive electronics and liquid crystal displays.

In July, HYC was among the first companies to list on Shanghai’s Nasdaq-like STAR Market, which was launched to make it easier for domestic tech companies to raise money at home.

The tie-up with Olyto will allow HYC to enter the wearable devices sector, an area where Olyto’s products are widely used, according to the statement. The tie-up will create a “synergy” between the two companies in areas such as research and component procurement, the statement said.

As part of the deal, HYC promised that the total profit generated from Olyto from 2019 to 2021 will be no less than 330 million yuan. For the first eight months this year, Olyto Automation reported profit of 72 million yuan on 208 million yuan of revenue.

Last year, HYC Technology reported profit of 243 million yuan on revenue of 1 billion yuan, according to the IPO prospectus it filed to the Shanghai exchange. The company closed 20% higher at 39.42 yuan on Monday, up just over 60% from its IPO price, giving it a market valuation of 15.8 billion yuan.

Contact reporter Mo Yelin (

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