The company intends to raise CNY 520 million (USD 75.57 million) through the IPO on the Shanghai Stock Exchange.
Anji Microelectronics Technology will start trading on the STAR Market, a new Shanghai Stock Exchange sci-tech board, on July 22. The initial public offering is priced at CNY 39.19 (USD 5.70) per share.
Anji, a semiconductor material producer, develops and sells various products such as copper, barrier, TSV, oxide, silicon/polysilicon, Al, and BSI CMP slurries. It also provides stripping solutions and other services in the field of microelectronics.
Though small in size (only 186 employees as of 2018), the company seemingly holds a firm position in the industry. It generated revenue of CNY 248 million (USD 36 million) from the sale of bare printed circuit boards last year. This indicator grew 26% from 2016's CNY 197 million (USD 28.6 million).
The firm's profits aren't too high, but stable. With a net profit margin hovering around 18% since 2016, it gained more than CNY 120 million (USD 17.44 million) for the last three years.
Anji's core product segment has splendid prospects: market price of bare printed circuit boards – main product manufactured and marketed by Anji – has been steadily growing since the global financial crisis of 2008.
Brokerage company Soochow Securities expects Anji’s revenues to zoom in the short term. Perhaps, it is a quite positive view of the company, which is facing fierce competition in the industry and is exposed to the risk of entry by potential competitors. Anji's STAR-Market shares have the potential to become a kite stock.