Subscription for the initial public offering of BASICSEMI (HKEX: 09971) concluded on July 3, with the shares scheduled to commence trading on July 8.
Market data indicates the offering was significantly oversubscribed. By June 30, the total margin financing for the IPO reached approximately HK$23.958 billion. Against a public offering tranche of HK$43.3 million, this represents an over-subscription of about 552.29 times.
Key Details of the Offering
The company is issuing 27.386 million H shares, with 5% allocated for the public offering in Hong Kong. The offer price is set within a range of HK$27.49 to HK$31.62 per share, aiming to raise up to HK$870 million. The minimum board lot is 200 shares, requiring an entry cost of approximately HK$6,388.
Allocation of Proceeds
The company intends to allocate the net proceeds as follows: 60% will fund the expansion of wafer and module production capacity, including the purchase and upgrade of production equipment and machinery; 20% is earmarked for research, development, and technological innovation related to new silicon carbide (SiC) products; 10% will be used to expand the global distribution network for SiC products; and the remaining 10% is designated for working capital and general corporate purposes.
Company Background and Ownership
According to the prospectus, Dr. Wang Zhihan, the founder of BASICSEMI, controls 45.98% of the shares through Bronze Sword Technology and several other entities. Since its establishment, the company has conducted multiple pre-IPO financing rounds, raising a total net cash amount of approximately RMB 1.032 billion. Investors include industrial and strategic shareholders such as Bosch Ventures, GAC Zhixing, CRRC Qingdao, and Wingtech Technology. Notably, this IPO did not involve cornerstone investors.
Founded in 2016, BASICSEMI is engaged in the research, development, manufacturing, and sales of silicon carbide power devices in China. Its primary product offerings include automotive-grade and industrial-grade SiC power modules, SiC discrete devices, and power semiconductor gate drivers.
Market Position and Financial Performance
Based on data from Frost & Sullivan, the company ranked sixth in China's SiC power module market by 2024 revenue, capturing a 2.9% market share and ranking third among Chinese companies. In the same year, it held the ninth position in both the Chinese SiC discrete device market and the power semiconductor gate driver market, with market shares of 2.7% and 1.7%, respectively.
Financially, the company reported revenues of approximately RMB 221 million, RMB 299 million, and RMB 311 million for the fiscal years 2023, 2024, and 2025, respectively. However, it recorded net losses of about RMB 342 million, RMB 237 million, and RMB 335 million for the same corresponding periods.