- 2018-09-27
Foxconn Industrial Internet listed in Shanghai
On the morning of June 8, Guo Taiming struck the bell at the Shanghai Stock Exchange, officially kicking off Foxconn's road to Shanghai A-share listing. It is reported that the full name of the listed entity is Foxconn Industrial Internet Co., Ltd., which was established in 2015, and the stock is referred to as Industrial Fulian.
After listing, its stock price rose 44% after the opening, reaching the limit of new stocks. It reported 19.83 yuan per share, and its market value reached 390.6 billion yuan, surpassing Midea and Hikvision, becoming the 14th largest company in the A stock market. The largest company in technology stocks.
Foxconn, also known as Hon Hai Precision Industry, headquartered in Shenzhen, is Apple's main foundry company, but in recent years it has been trying to improve its position in the value chain by designing and producing its own advanced equipment , Instead of just assembling imported high-tech components into iPhones and personal computers.
Foxconn Industrial Internet (Foxconn Industrial Internet, FII) manufactures electronic equipment, industrial robots and cloud computing components.
The Foxconn subsidiary, referred to as the FII for short, had revenues of US$56 billion last year, while the San Jose-based hardware manufacturer Cisco had revenues of US$48 billion. Industrial Fulian will use the funds raised from the IPO to develop businesses related to 5G mobile Internet and automated manufacturing.
After national champion companies such as Alibaba and Baidu chose to list in New York, Chinese policymakers tried to attract leading technology groups into the local capital market.
Earlier this year, the China Securities Regulatory Commission issued a new regulatory framework for the issuance of China Depository Receipts (CDR). The plan is modeled after the American Depositary Receipt (ADR), which allows foreign company stocks to be traded in the United States.
CDR will provide a mechanism for groups that have been listed overseas or that are not eligible for A-share issuance under the normal system to enable them to be listed in mainland China.
However, Chinese securities regulators are also strictly controlling the speed of IPOs—especially when the market is weak—to avoid being "blood sucked" by the secondary market; "blood sucking" is a term commonly used by domestic traders in China. Since hitting a 13-month high in late January, the Shanghai Composite Index has fallen 11%, including a 1.4% drop on Wednesday.
"Regulators have worked hard to achieve a balance between supporting the listing of unicorns and maintaining market stability," said Yan Lei, a computer industry analyst at Ping An Securities. "The Foxconn model will become the future of China's unicorn IPO or CDR. The issuance model. The short-term impact on the market has been significantly mitigated by (this transaction structure)."
Although the prospectus avoids using the term "cornerstone investor", the transaction allocates 30% of the new shares to so-called "strategic investors." Like traditional cornerstone investors, these investors will also face a lock-up period of one to three years. A rare arrangement is that 70% of non-strategic institutional investors will also receive a 12-month lock-up period.
The issue price of Industrial Fortune Union is equivalent to 17 times the company's 2017 earnings, and its valuation is far below the informal upper limit of 23 times the P/E ratio implemented by China's securities regulators in recent years.
From the submission of the prospectus application draft to the IPO meeting, Foxconn took 36 days to create the fastest A-share IPO. To ring the bell today, Foxconn has spent 4 months.
According to Guo Taiming's statement a few days ago, the reason why he chose A-share listing is to allow mainland employees to also get stocks.
According to the prospectus, the main shareholders of Foxconn Industrial Internet include the backbone company (41.14% of the shares), Shenzhen Futaihua (24.62% of the shares), Ambit Cayman (10.73% of the shares), Shenzhen Hongfujin (shareholding ratio 9.23%) and so on. It is understood that the above-mentioned companies are all subsidiaries of Hon Hai Precision (Foxconn is Hon Hai’s investment company in the mainland).
In addition, it is worth noting that among the strategic investors of Foxconn Industrial Internet, we have also seen Internet giants and manufacturing groups such as BAT, FAW, Anshan Iron and Steel, and China Railway.
Previously, Guo Taiming said that the biggest revolution in the future of science and technology is the industrial Internet, and its output value is 100 times that of the consumer Internet.
At present, in this direction, Foxconn Industrial Internet Corporation provides a platform and five solutions, namely, the industrial Internet platform BEACON, industrial Internet solutions, communication network equipment solutions, cloud service equipment solutions, and compact tool solutions. , Industrial robot solutions.
In addition, the prospectus also shows that the funds raised will also be used in 20 sub-projects such as industrial Internet platforms, high-performance computing platforms, network communication equipment, 5G industrial Internet systems, and high-end mobile phone precision components.
It can be seen that in the industrial Internet, Foxconn has begun to focus on the layout early.
Coincidentally, just last night, the Ministry of Industry and Information Technology issued the "Industrial Internet Special Working Group 2018 Work Plan", which focused on putting forward a number of support measures for the "Industrial Internet", involving financing and other aspects.
In this regard, some experts said that the relevant government departments in my country have always attached great importance to the development of the industrial Internet. This time the Ministry of Industry and Information Technology proposed to support the direct financing of industrial Internet companies in overseas capital markets, which will benefit the development of industrial Internet companies.
For Foxconn, the night before its listing, the Ministry of Industry and Information Technology issued a policy to support the development of the industrial Internet. This is undoubtedly a good thing, and it can be described as a "double happiness".