Industrial internet behemoth Foxconn finished its selection process for strategic investors Thursday, deciding to put China's leading internet giants including Baidu, Alibaba, and Tencent on its final list, the Securities Times reported on Friday.
The news came four days after the company released its prospectus on Monday.
According to its prospectus, the company plans to raise a total of RMB 27.25 billion by issuing roughly 1.97 billion shares during its IPO in the Shanghai Stock Exchange (SSE) later this month, 30 percent of which is set to be held by strategic investors.
The prospectus also showed that the company would select its strategic investors from the companies with a good reputation and significant market influence which are in the public interest, large state-owned enterprises or their subsidiaries, large insurance companies or their subsidiaries, national investment funds, as well as those which have a long-term strategic cooperation with the company.
Given Foxconn's advantages in hardware design and manufacturing, analysts believe that the specialties of those internet companies will better complement its business.
In addition, issuing shares to strategic investors will also help mitigate the potential impact of the company's IPO on the stock market and maintain the stability of the secondary market.
As China's first unicorn to be listed in the A-share market, the company is now the world leading manufacturer of telecommunication network equipment, cloud service equipment, precision instruments and industrial robots.
According to Guo Taiming, founder and CEO of Taiwan-based Honghai Technology Group which is the parent company of Foxconn, the listing of Foxconn in the A-share market is expected to accelerate the company's business transition towards more cutting-edge technologies including intelligent manufacturing, production of "Industry 4.0" robots, artificial intelligence and big data.
"Small and medium-sized enterprises can also enhance their productivity via Foxconn's industrial internet cloud," said Guo.
The news came four days after the company released its prospectus on Monday.
According to its prospectus, the company plans to raise a total of RMB 27.25 billion by issuing roughly 1.97 billion shares during its IPO in the Shanghai Stock Exchange (SSE) later this month, 30 percent of which is set to be held by strategic investors.
The prospectus also showed that the company would select its strategic investors from the companies with a good reputation and significant market influence which are in the public interest, large state-owned enterprises or their subsidiaries, large insurance companies or their subsidiaries, national investment funds, as well as those which have a long-term strategic cooperation with the company.
Given Foxconn's advantages in hardware design and manufacturing, analysts believe that the specialties of those internet companies will better complement its business.
In addition, issuing shares to strategic investors will also help mitigate the potential impact of the company's IPO on the stock market and maintain the stability of the secondary market.
As China's first unicorn to be listed in the A-share market, the company is now the world leading manufacturer of telecommunication network equipment, cloud service equipment, precision instruments and industrial robots.
According to Guo Taiming, founder and CEO of Taiwan-based Honghai Technology Group which is the parent company of Foxconn, the listing of Foxconn in the A-share market is expected to accelerate the company's business transition towards more cutting-edge technologies including intelligent manufacturing, production of "Industry 4.0" robots, artificial intelligence and big data.
"Small and medium-sized enterprises can also enhance their productivity via Foxconn's industrial internet cloud," said Guo.
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