Guangdong Tianyu Semiconductor Co. Ltd. (2658.HK), a silicon carbide epitaxial wafer maker, slid in its Hong Kong trading debut on Friday, opening 34.5% lower at HK$38 before narrowing its losses to close down 24.97% at HK$43.50 at the midday break.
The company raised about HK$1.67 billion ($215 million) in net proceeds by selling 30 million shares for HK$58 each. The Hong Kong public offering was 59 times oversubscribed, while the international tranche was 1.47 times covered.
Two cornerstone investors, Guangdong Primitive Forest and Glory Ocean, subscribed for a total of 2.78 million shares, accounting for 4.72% of the offering.
Tianyu reported revenue of 257 million yuan in the first five months of the year, down 13.5% year-on-year. It posted a net profit of 11.2 million yuan for that period, reversing a loss of 112 million yuan a year earlier.
The company plans to use 62.5% of the IPO funds to expand its capacity expansion over the next five years. Another 15.1% will go to enhance its R&D capabilities, and 10.8% will go to strategic investments.
By Lee Shih Ta
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