Foxconn Industrial Internet has received approval from China’s securities regulator to raise capital through an initial public offering. The unit of Taiwan’s Hon Hai Precision Industry has been approved by the China Securities Regulatory Commission to raise CNY 27 billion (approximately USD 4.3 billion) in an IPO, South China Morning Post reports, citing a statement from the regulator. Foxconn filed its stock-sale application on 1 February.
According to unnamed analysts, the offer would be China’s biggest stock sale since the CNY 30.6 billion IPO by Guotai Junan Securities three years ago, putting it on path to become the largest technology company by market value on the mainland, with CNY 500 billion in market capitalisation expected after the listing.
The Foxconn unit intends to offer around 1.8 billion shares, or 10 percent of its capital. The company has announced it will use the proceeds from its IPO to fund eight new projects that cover cloud computing, building a data centre, 5G and the IoT projects and expansions into ‘intelligent manufacturing’.
