BRIEF: SICC launches $260 million IPO

Semiconductor company SICC CO. Ltd. (2631.HK; 688234.SH) launchedits Hong Kong IPO on Monday, planning to issue 47.7 million shares at up to HK$42.80 per share to raise up to HK$2.04 billion ($260 million). The company plans to allocate 5% of the shares to local Hong Kong investors, with the remainder going to the international placement.

The subscription period ends on Aug. 14, with trading set to begin on Aug. 19. The company said it will use around 70% of the net proceeds to expand production capacity for 8-inch and larger substrates; 20% will go to enhance R&D; and the remaining 10% will go to working capital and general corporate needs.

SICC specializes in silicon carbide substrate R&D and production. Driven by falling product prices and rising sales costs, the company’s revenue dropped 4.25% year-on-year to 408 million yuan ($57 million) in this year’s first quarter, while its net profit plunged 81.52% to 8.52 million yuan.

By Lee Shih Ta

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