China-based semiconductor technology provider VeriSilicon Microelectronics has received approval for an initial public offering that will give chipmaker Intel and electronics producers Xiaomi and Samsung the chance to exit, DealStreetAsia reported on Monday.
The company is looking to issue approximately 48.3 million shares on the Shanghai Star Market to raise up to RMB790m ($111m), and its valuation stands at a minimum of $421m, according to DealStreetAsia. China Merchants Securities has been appointed lead underwriter for the offering.
VeriSilicon provides silicon and semiconductor product design services in addition to production services such as wafer fabrication, packaging, product certification, testing and fault analysis. It filed for an IPO in the US in 2014 but withdrew two years later.
The imminent offering comes after Xiaomi paid an undisclosed amount for a 6.25% stake in the company in June 2019, following $27.3m in series G funding from the state-owned Pudong Science and Technology Investment in 2014.
Austin Ventures and Sierra Ventures had supplied $10m in series F financing across 2011 and 2012, following $6m from unnamed investors in 2010 and $7.8m the previous year.
VeriSilicon raised $20m in a 2007 series D round led by China Investment Fund (CIF), a partnership between computing technology provider IBM and investment bank Lehman Brothers, that included VantagePoint Venture Partners, Austin Ventures, Sierra Ventures, CID Group and IDG Technology Venture Investment, taking its total funding to $58m.
Austin Ventures and Sierra Ventures co-led the company’s $14.8m series C round in 2006, after $13.5m in series B funding from Intel unit Intel Capital and Legend Capital – the venture capital firm formed by conglomerate Legend Holdings – the year before.
CID Group, KTB/UCI, International Finance Corporation, HSBC Private Equity (Asia) and existing investors WI Harper Group, IDG Technology Venture Investment, iGlobe Partners and Harbinger Ventures filled out the series B round.
China’s National Integrated Circuit Investment Fund owns an 8% stake in VeriSilicon that is set to be diluted to 7.2% post-IPO, while Xiaomi’s 6.25% share would be cut to 5.6%.
The company’s website also lists Samsung subsidiary Samsung Venture Investment, WestSummit Capital, VantagePoint Venture Partners, Sunic Capital, Shanghai Xingcheng Investment Management, Walden International, Wealth Strategy Holdings and Juntong Capital as investors.
