Foxconn Industrial Internet, a unit of the world’s biggest contract manufacturer whose products include Apple’s iPhones, was put on the fast track for securing the approval by China’s securities regulator to raise capital through an initial public offering.
The unit of Taiwan’s Hon Hai Precision Industry has been approved by the China Securities Regulatory Commission to raise 27 billion yuan (US$4.3 billion) in an IPO, according to a notice by the regulator. Foxconn filed its stock-sale application on February 1.
The offer would be China’s biggest stock sale since the 30.6 billion yuan IPO by Guotai Junan Securities three years ago, putting it on path to become the largest technology company by market value on the mainland, with 500 billion yuan (USD80 billion) in market capitalization expected after the listing.
Foxconn isn’t the only technology company that’s being courted to raise capital on the mainland. Other companies in the pipeline include China’s dominant ride-sharing company Didi-Chuxing, the country’s biggest on-demand internet service provider Meituan-Dianping, and Ant Financial Services Group, an affiliate of Alibaba Group Holdings, which owns the South China Morning Post.