(Yicai Global) Dec. 9 -- The share price of Hyc Technology jumped today after the Chinese testing equipment maker said that it will purchase Olyto Automation Technology to make its first acquisition after going public on Shanghai's new Star Market.

Hyc's [SHA: 688001] stock price climbed nearly 16 percent to CNY38.05 (USD5.40) by 12.10 p.m. Its market cap was CNY13.2 billion (USD1.9 billion). 

Hyc will acquire wearables testing equipment maker Olyto for CNY1.15 billion (USD163.5 million) to widen its assets, the Suzhou-based buyer said in a statement on Dec. 6. Hyc will issue new shares via private placement to pay 70 percent of the purchase and cover the rest in cash. Some of the share issuance proceeds will go to fund Olyto's project needs.

Established in 2005, Hyc was among the first firms to issue shares on the Nasdaq-style tech board that started trading in July.

The deal will help Hyc to build a more comprehensive industrial chain, extending from panel displays and chips to consumer electronics, the buyer said, adding that joining forces means savings and widening profit margins.

Founded in 2015, Suzhou-headquartered Olyto's products are mainly used for testing smartwatches and wireless headphones.

Editor: Emmi Laine