(Yicai Global) Aug 12 -- Shares of Leadyo IC Testing rose after the semiconductor processing company said it will raise CNY1.4 billion (USD211 million) via a private placement to expand its business.

Leadyo's stock price [SHA: 688135] soared as much as 10.6 percent to CNY55 (USD8.50) intraday and closed 8.6 percent up. The firm listed its shares on Shanghai's Star Market last November. The equity price is more than 7 percent down from its first trading day.

Some 96 percent of the proceeds of the latest fundraising will be used to build an integrated circuit chip testing project in the company's hometown of Dongguan in southern China, the firm said in a statement yesterday. The remainder will be considered working capital.

Chinese companies are doubling down on semiconductor design and manufacturing but self-sufficiency in testing to ensure quality is still far.

The first phase of Leadyo's new project should cost CNY550 million (USD84.9 million). The facility will test 12-inch and 8-inch wafers, and finished chips, the municipal government's investing channel reported on WeChat.

Once completed, the project should bring CNY646 million in revenue to the company every year, and attract high-level science and technology talents, according to Leadyo.

Established in 2010, Leadyo owns two facilities in Dongguan and Shanghai which can test about 120,000 wafers and 300 million finished chips every month, according to the company's website.

Editor: Emmi Laine, Xiao Yi