VeriSilicon Microelectronics, a China-based semiconductor manufacturing services provider backed by chipmaker Intel and electronics producers Xiaomi and Samsung, is set to raise RMB1.87bn ($268m) in its initial public offering, DealStreetAsia reported today.
The company will offer up to 48.3 million shares priced at RMB5.50 each on the Shanghai Stock Exchange’s Star Market and the offering has reportedly been oversubscribed by seven times.
Founded in 2001, VeriSilicon makes use of its intellectual property to create customised silicon and semiconductor products for customers in the electronics industry in a short time frame.
China Merchants Securities is lead underwriter for offering while Haitong Securities is co-underwriter. The proceeds will be used for product and platform development in addition to construction of a research hub.
Xiaomi invested an undisclosed amount in VeriSilicon in June 2019 in return for a 6.25% share, and its Hubei Xiaomi Changjiang Industrial Fund will come out with a 5.6% stake post-IPO.
The company had previously received approximately $82m from investors including Intel unit Intel Capital, which joined Legend Capital to invest $13.5m in 2005 and which now owns 2.1%, Samsung subsidiary Samsung Ventures, Wealth Strategy Holdings, which owns 8.7% post-IPO, and National Integrated Circuit Industry Investment Fund (7.2%).
The IBM-backed China Investment Fund, Austin Ventures, Sierra Ventures, VantagePoint Venture Partners, CID Group, IDG Capital, KTB/UCI, International Finance Corporation, HSBC Private Equity (Asia), WI Harper, iGlobe Partners, Harbinger Ventures, Sunic Capital, Shanghai Xingcheng Investment Management, Walden Internationa and Juntong Capital are also investors.
