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‘Cambricon is getting closer to an IPO’
Posted on Friday, 26 June 2020 08:08
China-based artificial intelligence semiconductor manufacturer Cambricon is planning a stock market flotation to raise CNY 2.80 billion (USD 395.79 million), recent media reports suggested.

According to a filing seen by Chinese media, the company is looking to list on the Shanghai Sci-Tech Innovation Board (STAR Market), China’s answer to the Nasdaq Stock Exchange, after receiving the green light from the China Securities Regulatory Commission earlier this month.

TechCrunch also reported on the potential IPO and said Cambricon may use the proceeds on cloud-based algorithm training and inference, edge computing and cash flow boost.

The company was last valued at CNY 2.50 billion (USD 353.12 million) in 2018 and expects its market capitalisation to be more than CNY 1.50 billion in the flotation.

Cambrian is billed as a leader in the global smart chip field with products covering all kinds of intelligence cloud servers, intelligent terminals and core processor semiconductors.

The group claims to be the first unicorn startup company in the global artificial intelligence (AI) chip field.

Cambricon used to be a major supplier of Huawei’s AI smartphone chips and would be the first of its kind to list on the Star Market, joining a total 91 other companies currently traded there.

Founded in 2016, the group is billed as one of the most valuable AI semiconductor makers in China but was blacklisted by the US government in October last year, along with SenseTime, Megvii and Yitu, which banned it from purchasing components from USD-based businesses.

Cambricon is backed by investors such as Lenovo, China International Capital, TCL and the Chinese Academy of Sciences.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 272 initial public offerings of companies based in China announced in 2020 to date.

China Three Gorges Renewables announced plans to go public on the Shenzhen Stock Exchange to raise CNY 25.00 billion in the largest of these.

Sichuan Langjiu, Qi An Xin Technology Group, Shengyi Electronics and Shanghai Electric Wind Power Group, among others, have also announced IPOs in the year so far.

© Zephus Ltd