Hong Kong-listed Chinese chipmaker Semiconductor Manufacturing International Corp. (SMIC) said Tuesday its board of directors has approved plans for a listing on Shanghai’s Nasdaq-like high-tech STAR market, making it the latest Chinese tech company to “return” to mainland public capital markets for fresh funds.
SMIC will look to issue no more than 1.69 billion shares on the STAR market, according to a filing to the Hong Kong Stock Exchange.
About 40% of the capital raised will be used to build a new manufacturing plant for 12-inch chips, while nearly 40% will be used as additional working capital. The remainder will be allocated to reserves for the research and development of advanced technologies, the filing said.
The announcement of the listing plan, which still needs to be approved by shareholders and Chinese regulators, comes weeks after reports that Huawei was shifting production of its in-house designed chips away from Taiwan Semiconductor Manufacturing Co. to Shanghai-based SMIC.
SMIC went public in Hong Kong and New York in March 2004. In May last year, the company applied for voluntary delisting from the New York Stock Exchange at a time when the Trump administration tightened crackdowns on Chinese tech companies.
SMIC’s stock was up 10.6% as of 11:50 a.m. on Wednesday.
Contact reporter Ding Yi (email@example.com)