VeriSilicon's Star Market Shares Up 284.12% on First Trading Day

Technology Author: Dixuan Lu, Ivan Platonov Editor: Luke Sheehan Aug 18, 2020 04:50 PM (GMT+8)

On August 18, one-stop semiconductor IP provider VeriSilicon kicked off trading on the Star Market.

Image Credit: VeriSilicon website

VeriSilicon (688521:SH) creates semiconductor products from definition to packaging and testing based on the company's unique Silicon Platform as a Service (SiPaaS). On the first trading day, the stock price went up by 284.12% according to the closing price.

As the second-largest contributor to revenues, IP authorization business's gross profit margin from 2017 and 2019 was 92.68%, 96.35% and 94.78%. The overall gross margin of the company in this period was 35.18%, 41.14% and 40.16%, the same trend with that of the main business.

Funds raised by the IPO will be invested in the development and industrialization projects of IP application solutions for and system-level chip customization platforms for smart wearables, smart vehicles and other fields.

From the perspective of historical development, the semiconductor industry is experiencing the third industrial transfer, IP provider is likely to benefit from transformation and localization of the IC industry.