Hua Hong raises $2.96bn in Shanghai share sale

Author: EIS Release Date: Aug 15, 2023

Hua Hong, the Shanghai foundry, raised its target amount of $2.96 billion on the Shanghai exchange this morning.

 

The company sold 24% of its issued share capital half of which went to 30 strategic investors.

 

The company had its IPO in Hong Kong in 2014 when it raised $332 million.

 

 

The foundry is seen as strategically important to China’s strategy of focussing on trailing edge ICs now it is deprived of leading edge US-controlled tools.

 

 

The company runs three 200 mm fabs and three 300 mm fabs and its most advanced process is22nm. It is building a fourth 300mm fab at Wuxi (pictured) where the money raised in today’s offer will be spent.

 

The company  started off in 1996 as a DRAM jv with NEC and merged with Grace Semiconductor in 2000. It dropped DRAM in 2003 to become a foundry. Last year it had revenues of $2.5 billion  – up 52% on 2021.