Shares in Chinese chipmaker Semiconductor Manufacturing International will begin trading tomorrow on the Shanghai Star market after it completed a record Rmb45.3bn (US$6.4bn) IPO, the world's biggest this year.
Listing had previously been expected on July 22, the first anniversary of the technology-focused Star board.
SMIC, the first overseas-listed red chip to float in the A-share market, offered 1.69bn A-shares, or 23.6% of its enlarged capital. It sold 50% of the offering to 29 strategic investors, including the deal's two sponsors and two overseas entities, GIC Private and Abu Dhabi Investment Authority.
The other strategic investors are 22 state-owned funds, insurers and trust companies, and three private-sector institutions – Fosun International and two companies with business connections to SMIC. All will face lock-ups of 12–24 months.
Institutional investors took 70% of the remaining shares and retail 30% after claw-back.
Retail investors failed to pay 490,907 shares (Rmb13.5m), which will be underwritten by the sponsor Haitong Securities.
The company said that it had authorised Haitong Securities to over-allocate the 15% greenshoe, giving the leads a tool to stabilise the share price in the first 30 days after the listing.
SMIC originally planned to raise Rmb20bn when it filed in early June.
SMIC, China's biggest semiconductor foundry, is seen as a beneficiary of restrictions on the use of US technology to produce chips for Chinese companies on a trade blacklist, which includes telecom equipment maker Huawei and other technology firms such as SenseTime and Megvii.
SMIC's listing is by far the biggest so far on the Star board, and is the biggest equity offering in the A-share market since Agricultural Bank of China's Rmb68.5bn Shanghai IPO in 2010.
Proceeds will be used to upgrade its capacity to manufacture advanced chips at sizes of 14-nanometres and below, fund research and development and replenish working capital.
The company’s H-shares fell 4.6% to HK$39.90 this afternoon, but have risen 233% since the start of the year.
Haitong Securities and CICC are the joint sponsors and joint bookrunners with Guotai Junan Securities, China Securities, China Development Bank Securities and Morgan Stanley Huaxin Securities.