(Yicai Global) Dec. 8 -- Hoymiles Power Electronics has set a new record for the highest-priced initial public offering in China in what will also be the country’s first stock market listing by a manufacturer of solar microinverters.
Hoymiles issued 10 million shares at CNY557.80 (USD87.79) apiece, increasing the total number outstanding to 40 million after the IPO, the Hangzhou-based firm said in a filing to the Shanghai Stock Exchange today. The sale values Hoymiles at about CNY22.3 billion (USD3.5 billion).
In its application, which was accepted by the SSE in January, the Hangzhou-based company said it was planning to raise CNY558 million by going public on Shanghai’s Nasdaq-like Star Market.
CNY258 million (USD40.6 million) of the IPO proceeds will be used to build an intelligent manufacturing base, nearly CNY88.8 million (USD14 million) to industrialize energy storage inverters, CNY71.6 million to upgrade intelligent complete sets of electrical equipment, and CNY140 million to supplement working capital, Hoymiles said.
The company did not say when the stock [SHA: 688032] will debut.
According to Shanghai Securities News, a number of large and mid-sized mutual funds, insurers, and private equity funds said the market is generally optimistic about Hoymiles and consider its more than CNY20 billion valuation as reasonable. The registration-based IPO system used for the Star Market hands pricing power to the market, the report said, citing senior investment bankers.
Hoymiles is a high-tech maker of power conversion equipment such as photovoltaic inverters and electrical device sets, with business in Asia, America, and Europe. It is one of the manufacturers with the most technology and advantages in the microinverter segment.
The company had revenues of CNY495 million, CNY460 million, and CNY307 million from 2018 to last year, with net profits of CNY16 million (USD2.5 million), CNY81 million, and CNY104 million, respectively. Its compound growth rate in the three years reached 186 percent.
Editor: Futura Costaglione