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在线翻译:
szdaily -> Markets -> 
Foxconn unit soars in Shanghai debut
    2018-06-11  08:53    Shenzhen Daily

FOXCONN Industrial Internet Co. (FII), a unit of the world’s largest contract manufacturer Foxconn, became China’s biggest domestically listed tech company by market cap Friday as its shares soared a maximum 44 percent on debut.

The company, which makes electronic devices, cloud service equipment and industrial robots, raised more than US$4 billion in China’s biggest initial public offering (IPO) since 2015.

FII hit the daily limit of 44 percent within seconds of trade, helped by caps on IPO valuations and investor enthusiasm for new issues.

The jump triggered a half-hour suspension and pushed FII’s market capitalization to about 390.5 billion yuan (US$61 billion), dethroning Hangzhou Hikvision Digital Technology as the biggest tech company listed on the Chinese mainland.

The listing is viewed as part of efforts by Foxconn, formally known as Hon Hai Precision Industry Co., to wean itself off its heavy reliance on manufacturing smartphones for Apple Inc. and to diversify into new areas.

“Right now, you can sense Foxconn wants to reduce its customer concentration risk,” said James Wei, analyst at Yuanta Investment Consultancy.

Units of Chinese tech giants Alibaba Group Holding Ltd., Baidu Inc. and Tencent were among the 20 cornerstone investors who took a combined 30 percent of the FII offering.

The three tech giants took roughly a combined 3 percent stake and agreed to a lock-up period of 36 months. Most of the other cornerstone investors can sell half of their stake after 12 months and the remainder after 18 months.

The use of the cornerstone investors is a new development in recent mainland listings. But it is one that is expected to be seen again as China woos tech giants such as Alibaba and Xiaomi Corp. to sell China Depositary Receipts in secondary IPOs, amid worries that the size of the deals could overwhelm mainland markets.

The FII debut comes a day after regulators published rules governing the issuance of China Depository Receipts, an instrument that allows secondary listings by overseas-listed Chinese firms such as Alibaba and Baidu.

The Ministry of Industry and Information Technology also Thursday released a three-year action plan for “smart manufacturing,” as China accelerates the integration of traditional manufacturing with digital technologies. (SD-Agencies)

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