Jun 17, 2022 05:43 AM

Chinese CPU Maker Loongson Eyes $357 Million in Downsized IPO

What’s new: Chinese CPU maker Loongson Technology Co. Ltd. completed online subscription for its public share sale, moving a step closer to a planned debut on Shanghai’s STAR Market.

Loongson aims to raise 2.42 billion yuan (357 million) through the initial public offering, down from previously announced 3.5 billion yuan. Chairman Hu Weiwu said the downsized offering reflects multiple market factors and pledged to further increase investment in research and talent to boost the company’s business.

Loongson’s IPO involves the sale of 41 million shares, 80% of which were sold online to public investors. The company priced its shares at 60.06 yuan apiece, giving it a market valuation of 24 billion yuan.

The context: Loongson counts several leading state-backed industrial funds as strategic investors in the IPO, including the National Integrated Circuit Industry Investment Fund and the China Internet Investment Fund.

In 2021, Loongson reported 11% growth in revenue to 1.2 billion yuan. Net profit rose 230% to 237 million yuan. The company projected a decline in first-half revenue of 11% to 28% reflecting pandemic disruptions.

Hu said the company is racing to upgrade technologies to develop more advanced general-purpose processors by 2025 while conducting research on graphics processing units. The company is also testing a microcontroller unit for automobiles.

Loongson is among a number of Chinese CPU makers preparing for public share sales as the country encourages growth of domestic players in a bid to reduce reliance on imported semiconductors.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Contact reporter Han Wei ( and editor Bob Simison (

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.

Share this article
Open WeChat and scan the QR code
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription