Shares of chip designer Nsing Technologies Inc. (2701.HK; 300077.SZ) opened up 32% in their Hong Kong trading debut on Monday, but pared half the gains during the morning to close up about 16% at HK$12.52 by the midday break.
The company said it sold 95 million shares for HK$10.80 each, raising net proceeds of HK$944 million ($121 million). The Hong Kong public offering for local investors was oversubscribed by about 130 times, while the international offering was 1.51 times subscribed.
Nsing Technologies mainly provides control chips and system solutions for smart devices. Its products include microcontrollers (MCUs), security chips, RF chips and battery management chips. Its revenue rose 16.7% year-on-year to 960 million yuan in the first nine months of last year, while its net loss narrowed 54.4% to 75.75 million yuan.
The company plans to use about half of the IPO proceeds for R&D, including high-performance MCUs, multi-protocol communication and automotive-grade chips; 9.2% to upgrade existing products; 15% for strategic investments and acquisitions; 15% to repay bank loans; and the remaining 10% for working capital and general purposes.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
