BRIEF: AI SoC chipmaker Axera flatlines in Hong Kong trading debut

Shares of AI inference system on a chip (SoC) maker Axera Semiconductor Co. Ltd. (0600.HK) opened flat in their Hong Kong debut on Tuesday, and hovered around that level during the morning to close up about 1% at HK$28.48 by the midday break.

The company said it issued 104.92 million shares at an offer price of HK$28.20 each, raising HK$2.96 billion ($379 million). The Hong Kong public offering for local investors was 103.82 times oversubscribed, while the international offer was 6.8 times covered.

Axera focuses on AI perception and edge computing chips using a fabless production model. The core technology of its SoC products is a proprietary mixed-precision neural processing unit (NPU). The company had independently developed and commercialized five generations of SoC products by last September, with cumulative shipments exceeding 165 million units. Its chips are used in visual terminals, smart vehicles and edge AI inference applications.

Axera reported revenue of 270 million yuan in the first nine months of last year, up 5.8% year-on-year. It recorded a net loss of 830 million yuan during the period, 26% wider than the year-ago period.

The company plans to use 60% of its IPO proceeds to improve its existing technology platforms and to launch new products over the next four years. Another 15% will be used for R&D aimed at expanding its technological capabilities and business scope. The remainder will be used for equity acquisitions, sales expansion and general working capital.

By Lee Shih Ta

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