SG Micro (SHE:300661) has made progress in its planned initial public offering on the Hong Kong Stock Exchange, according to a Shenzhen bourse filing on Thursday.

The semiconductor company recently received a notification from the China Securities Regulatory Commission confirming the issuance and listing of its overseas share sale.

SG Micro plans to issue up to 125.5 million shares in Hong Kong.

The company has tapped China International Capital Corp. or CICC (SHA:601995, HKG:3907) and Huatai International as joint sponsors, according to its application proof filed Wednesday with the Hong Kong bourse.

Proceeds from the IPO will be used to enhance the company's R&D and for strategic investments and acquisitions. It also plans to use the funds raised to expand its overseas sales network in Europe, Japan, South Korea and Singapore over the next five years.

The proposed listing is still subject to approval from the Hong Kong securities watchdog and the bourse operator, SG Micro said.