BASICSEMI targets HKD712.5M in Hong Kong IPO starting June 29

BASICSEMI (09971.HK), a China-based silicon carbide power device integrated equipment manufacturer, launched its Hong Kong IPO on June 29, seeking to raise as much as HKD866 million.

The company said in its listing document the proceeds will support its expansion in the silicon carbide power semiconductor market. Cornerstone investors and lead underwriters were not disclosed in the initial filing.

BASICSEMI plans to offer 27.3862 million H shares globally, with about 5% allocated to the Hong Kong public offering and 95% to the international placing. The indicative price range is HKD27.49 to HKD31.62 per share, with a board lot of 200 shares requiring an entry fee of approximately HKD6,387.78. At the mid-point price of HKD29.56, net proceeds are estimated at about HKD712.5 million. The offer period runs from June 29 to July 3. The company did not disclose the greenshoe option or clawback mechanism details.

The company manufactures integrated equipment for silicon carbide power devices, a critical component in electric vehicles, renewable energy inverters and industrial power systems. Silicon carbide chips operate at higher voltages and temperatures than traditional silicon-based semiconductors, making them essential for EV powertrains and fast-charging infrastructure. China's push for semiconductor self-sufficiency has driven demand for domestic silicon carbide production capacity, with EV makers such as BYD Co. expanding use of the material. Global peers including STMicroelectronics and ON Semiconductor have also invested heavily in silicon carbide capacity.

Hong Kong's IPO market has seen a pickup in listings from mainland Chinese companies this year, particularly in the technology and semiconductor sectors. The listing comes as China Galaxy Securities said in a recent note that Hong Kong stocks' fundamentals have confirmed an inflection point, though market confidence and fund flows have yet to align.

The pricing gives BASICSEMI an enterprise value that will be determined at listing. First-day trading on the Hong Kong Stock Exchange's Main Board on July 8 will test investor appetite for China's silicon carbide supply chain. The company's market performance will be measured against listed peers including Shanghai-listed SICC Co. and Hubei-based San'an Optoelectronics, which have expanded silicon carbide wafer production. A successful listing would provide BASICSEMI with capital to scale manufacturing capacity and compete for market share in the fast-growing segment, while a weak debut could suggest caution among investors toward China's semiconductor equipment makers as ongoing export controls weigh on the sector.

This article is for informational purposes only and does not constitute investment advice.