Shares of China’s biggest contract chipmaker Semiconductor Manufacturing International Corp. (SMIC) soared by 245.96% to 95 yuan ($13.59) from its initial offering price of 27.46 yuan on its first day of trade in Shanghai.
SMIC on Thursday raised 53.2 billion yuan, more than double its initial filing of 20 billion yuan, marking the biggest market debut in China in a decade.
Founded in 2000, SMIC is seen as a key player to grow China’s domestic semiconductor industry amid escalating tensions between China and the US.
SMIC is listed on the Shanghai Science and Technology Innovation Board (STAR Board), known as China’s Nasdaq for publicly-listed tech firms. The company was previously listed on the New York Stock Exchange and delisted last year. It’s still listed in Hong Kong.
The company said it will use 40% of the raised funds for its 12-inch chip SN1 project and 20% for the company’s R&D projects.
SMIC achieved a revenue of $905 million in the first quarter of 2020, up 35.3% from last year. It expects to see a 3% to 5% revenue increase in the second quarter.
According to IC Insights, SMIC ranked fourth in the world in terms of the average revenue per wafer in 2018.