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Nexchip IPO: Up to $890M for Chip Innovation
30 Jun
Summary
- Nexchip Semiconductor is pursuing up to HK$6.98 billion in Hong Kong.
- Proceeds will fund R&D, 22nm platform optimization, and AI production.
- Lower net profit predicted for 2026 due to depreciation costs.
Nexchip Semiconductor is preparing to raise up to HK$6.98 billion, approximately $890.26 million, through a share offering in Hong Kong. This move places the chip firm within Hong Kong's active capital markets, joining other technology companies seeking significant funding.
The company plans to allocate a substantial portion, about 53.6%, of the raised capital towards research and development. Key areas of focus include the optimization of its 22nm technology platform and initiatives for AI-based production. Cornerstone investors, such as a unit of Chery Automobile, have committed to purchasing shares.
Despite its investment in new technologies and facilities, Nexchip projects a decrease in net profit for 2026 when compared to the preceding year. This forecast is attributed mainly to anticipated depreciation expenses stemming from its newly established production facility. The firm expects its shares to commence trading on July 10.
