Zhejiang Supcon Technology, a China-based industrial automation technology provider backed by corporates Chint, Sinopec, Intel, Wanxiang and Lenovo, will raise RMB1.76bn ($268m) in its initial public offering, DealStreetAsia reported yesterday.
The offering consists of about 49.1 million shares that will be issued on the Shanghai Stock Exchange’s Star Market and priced at RMB35.73 each. Shenwan Hongyuan Financing Services is principal underwriter for the IPO and Citic Securities is joint underwriter.
Supcon produces process automation technologies for use in manufacturing, petrochemical production and the power, nuclear, oil and gas industries.
The company posted a net profit of approximately $37m for the first nine months of 2020, from about $314m in revenue. IPO proceeds will support technology development in areas like smart industrial software and control valves.
Although Supcon has not disclosed precise details of its earlier financing, it raised an undisclosed amount from Sinopec Capital, a corporate venturing vehicle for oil and gas supplier Sinopec, in September 2019.
Automotive component producer Wanxiang Group had joined Loyal Valley Capital and Hangzhou Puyang Investment Management to provide an undisclosed amount of funding for the company eight months earlier.
Energy technology provider Chint will hold a 7.4% stake in Supcon once it floats, while Sinopec Capital and semiconductor and data technology provider Intel will each own 4.5%, power producer China National Nuclear’s CNNC Industry Fund Management Corporation 2.7% and electronics producer Lenovo 0.5%.
Supcon founder Jian Zhu will remain its largest shareholder, with a 14.7% stake post-IPO, followed by Hangzhou Yuancheng Management with an 8% share.
