Foxconn unit luring cornerstone investors for Shanghai IPO
Updated : May 14, 2018 04:47 PM IST
Foxconn Industrial Internet is yet to finalise the size of the initial public offering (IPO), but it plans to use the proceeds to finance investments totalling 27.3 billion yuan ($4.3 billion) on areas including cloud computing, data centre and 5G related projects, according to the prospectus filed on Monday.
Unlike most Chinese listings which only have two tranches of investors - institutional and retail - the firm's float will also bring in several strategic investors that will be locked up for at least 12 months.
In China, the IPO share issue prices are capped by the regulator's unwritten valuation rules of 23 times historical earnings and new stocks generally surge 44 percent on market debuts.