Chip giant Changxin Technology has received regulatory approval from the China Securities Regulatory Commission and officially launched its IPO process. The company plans to raise 29.5 billion yuan (about $4.1 billion), making it the largest semiconductor listing in recent years. Based on the fundraising target and share count, the estimated issue price is around 4.41 yuan per share, putting the post-IPO market cap at nearly 295 billion yuan ($41 billion). In the first half of this year, the company expects revenue of 110 billion to 120 billion yuan and net profit of 66 billion to 75 billion yuan, a strong turnaround from previous losses.
According to initial placement calculations, the proportion of new shares tradable on the first day is low. The initial strategic placement accounts for the maximum 50% of the offering. The offline placement follows a "3+7" rule, where 70% of institutional shares are locked for six months. Estimates show that about 78% of total new shares will be in lock-up on the first day, leaving only 22% freely tradable, corresponding to a free-float market cap of about 6.5 billion yuan ($900 million).
Investors need to meet eligibility and market value thresholds. Retail investors subscribing online (code 787825) must have a STAR Market trading account and hold at least 10,000 yuan of Shanghai-listed stocks on average for the 20 days before July 14. Institutional investors participating in offline bookbuilding face strict requirements: they need 60 million yuan in Shanghai market value and at least 6 million yuan in STAR Market daily average holdings. On the lock-up side, some pre-IPO shareholders holding more than 51% have committed to a 36-month lock-up. The largest shareholder, Qinghui Jidian, also promised to extend the lock-up by 12 months if net profit attributable to the parent (excluding non-recurring items) in the year after listing falls more than 50% from the pre-IPO year. The lead underwriter, CICC, has a 15% greenshoe option, allowing it to buy shares in the secondary market within 30 calendar days if the stock price falls below the issue price.