(Yicai Global) June 2 -- Semiconductor Manufacturing International Corporation, the biggest chipmaker on the Chinese mainland, plans to raise CNY20 billion (USD2.8 billion) in a secondary listing on Shanghai’s Nasdaq-style Star market.

The Shanghai Stock Exchange, which runs the science and technology board, has accepted the Shanghai-based company’s application to list, the bourse said yesterday. SMIC is listed in Hong Kong and delisted from the New York Stock Exchange a year ago, after 15 years as a publicly traded company in the US.

In the first quarter, SMIC’s net profit more than quintupled to USD64.2 million from a year earlier, while revenue rose 35 percent to USD905 million, a new quarterly record.

Its listing prospectus said CNY8 billion of the funds raised will go on a project to make 12-inch chips, including a production line with a monthly capacity of 35,000 units, to boost the level of production-related techniques to 14 nanometers or even smaller. CNY4 billion will be reserved for other existing projects, while the remainder will top up working capital.

SMIC first announced its plan to list on the Star Market on May 5, saying it would issue as many as 1.69 billion new shares, equal to 25 percent of its total.

The company’s shares [HKG:0981] climbed 13.6 percent last month. They gained almost 2.9 percent today to close at HKD18.60 (USD2.41) each, giving SMIC a market capitalization of HKD101.9 billion (USD13.15 billion), on top of an 8.5 percent surge yesterday.

Editor: Ben Armour