Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
SMIC
Stock Market

Chinese company SMIC wants to attract 6.55 billion dollars through the sale of shares

19.03.2021
2 min read

SMIC placed 1.69 billion shares on the market

Chinese company SMIC, which specializes in the production of microelectronics, has released to the market its shares worth 6.55 billion dollars. The papers are placed on the exchange in Shanghai. According to the agency Refinitiv, the sale of shares from SMIC will be the largest this year. Before that, the company’s securities were traded at the Hong Kong stock exchange.
The new shares were issued in the amount of 1.69 billion, their value is 3.89 dollars per unit. The decision to place them in the company is commented as an opportunity to strengthen its position in the market and also to become more competitive. The shares will attract about $6.55 billion, and the volume of securities can be increased by 15% thanks to the placement option. If necessary, the company will be able to get 7.5 billion dollars. These funds will be used to expand production, develop new technologies in microelectronics and test them.
The company is the largest chip manufacturer in China. It was founded in 2000 and held an IPO in 2004. A well-known project is the production of single-chip systems Snapdragon 400 for Qualcomm.
During the year the value of SMIC shares increased by about 3 times, which allowed the company to achieve a capitalization of 31.7 billion dollars. According to the latest trades, the price of papers rose by 20.6%.
Not so long ago, SMIC announced the opening of a factory where the chips will be collected and tested. The company is a joint project with French company UTAC. The new facility is important for SMIC as a service provider, and the partner will be able to expand the range of manufactured components, including new generation memory.

SMIC

The Chinese company invested 50 million dollars in the joint factory, its share was 51%. UTAC invested $30 million, with one part contributed in cash and the other in intellectual property. It received a 30% stake in the company. 19% of the company’s shares are owned by various investors as well as employees. At the same time, UTAC and other investors have the opportunity to buy back the securities, but the reasons and circumstances of this right are clearly stipulated in the contract. The total amount of capital investment is 175 million dollars. The construction of the factory has already been completed and the assembly production is actively underway. The facility includes 11 thousand sq.m. of working space.
In addition, SMIC received a large order for the production of processors for Huawei Corporation. And earlier this contract was owned by TSMC, but then it was transferred to SMIC. Representatives of Huawei don’t talk about the reasons.

Tags: Stock Market
0
Previous Post African GDP was able to withstand the coronavirus pandemic Next Post Belarusian universal commodity exchange develops new platform

You Might Also Like

new collapse
Stock Market
Will there be a new stock market crash: forecast from the US Federal Reserve
28.01.2021
The Honest Company
Stock Market
The Honest Company plans to go public this year
13.01.2022
US Federal Reserve is printing dollars
Stock Market
The U.S. Federal Reserve is printing dollars to support the market in times of crisis
29.11.2020
Volume of natural gas production
Stock Market
Natural gas and oil production in Brazil rose to record levels
30.10.2020
stock tokens
Stock Market
Stock tokens of Benelux companies can be sold through the Dusk Network application
20.10.2020
SWIFT international system
Stock Market
SWIFT international system may not be used by Russia, India and China in the near future
10.09.2020

Recent Posts

  • 1How IT is used in banks
    How IT in banks helps transform the sector
    24.05.2022
  • 2Development of the financial sector-1
    Development of the financial sector in terms of DeFi potential
    23.05.2022
  • 3export volumes
    India’s export volumes rise to record levels
    22.05.2022
  • 4Ma Huaten
    Who is Ma Huateng: a professional history
    21.05.2022
  • 5Lenovo Group
    Lenovo Group: the history of the famous electronics brand
    20.05.2022

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Chinese taxi service DiDi Chuxing: a struggle for the market

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

guidelines for cryptocurrency exchanges
Canada releases guidelines for cryptocurrency exchanges
25.05.2022
How IT is used in banks
How IT in banks helps transform the sector
24.05.2022
Development of the financial sector-1
Development of the financial sector in terms of DeFi potential
23.05.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Chinese taxi service DiDi Chuxing: a struggle for the market
  • Annual report of the Central Bank: state of reserves and forecast for the future
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics