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Supcon files for IPO
Posted on Thursday, 26 March 2020 10:29
Zhejiang Supcon Technology, which claims to be one of China’s leading providers of automation and information technology products, has filed for an initial public offering (IPO) worth CNY 1.61 billion (USD 226.39 million).
The Hangzhou-headquartered relays and industrial controls manufacturer intends to issue up to 49.13 million new shares, representing a 10.0 per cent stake of its enlarged capital, via a public sale and placing on Shanghai Stock Exchange Sci-Tech Innovation Board.
Proceeds will be used for the research and development of next generation systems and to increase annual production capacity of high-precision pressure transmitters and intelligent valves.
Supcon provides industrial enterprises with automation equipment and software for intelligent manufacturing.
According to the prospectus, the company has been ranked number one in the domestic distributed control systems market for eight consecutive years, with a market share of 24.7 per cent in 2018.
Furthermore, it had a 24.3 per cent of the safety instrument system sector in China in 2018.
Supcon had operating income of CNY 1.69 billion in the first nine months of 2019 and CNY 2.13 billion in the full 12 months ended 31st December 2018 (FY 2017: CNY 1.71 billion; FY 2016: CNY 1.48 billion).
The group booked net profit of CNY 220.75 million in the Q1-3 2019 period and CNY 287.97 million in FY 2018 (FY 2017: CNY 169.32 million; FY 2016: CNY 50.62 million).
Zephyr, the M&A database published by Bureau van Dijk, shows 300 IPOs have been announced in 2020 to date.
The largest is PPD completing the sale of a 17.7 per cent stake on Nasdaq to raise USD 1.62 billion.
A proposed USD 700.00 million listing by Saudi Arabia’s Dr Sulaiman Al Habib Medical Group is the second-biggest of the year so far, followed by Flying Eagle Acquisition filing for a USD 600.00 million debut in New York.
© Zephus Ltd