The website of Shenzhen Stock Exchange’s ChiNext board shows that the IPO and listing examination of BYD Semiconductor Co., Ltd., considered by investors to be the “number one car chip share,” was suspended on August 18.
Specifically, the suspension of BYD Semiconductor’s IPO and listing examination is related to the law firm it hired to carry out the transaction.
The exchange website shows that Beijing Tianyuan Law Firm, which was advising BYD Semiconductor on the deal, was investigated by the China Securities Regulatory Commission (CSRC). According to the relevant provisions of Article 64 in the Examination of the Offering and Listing of Stocks on the ChiNext, the IPO and listing examination of BYD’s chip making subsidiary was halted. Only when the regulatory probe of the law firm is called off or completed within three months, and the Shenzhen Stock Exchange is informed, can BYD Semiconductor continue to complete the listing examination.
BYD Semiconductor responded that “the company will promote some review reports as soon as possible. As for whether the law firm will be changed, we are not clear.”
Before this suspension, BYD Semiconductor’s listing had been progressing smoothly and quickly. In just over two months, it completed the spin-off and two rounds of financing, and pushed the listing plan to the inquiry stage.
In 2019, Chinese EV maker BYD successively split off its power battery and other businesses to establish five subsidiaries. In April 2020, its semiconductor business was also split. At present, BYD’s power battery and semiconductor companies are poised to go public in separate listings.
BYD Semiconductor underwent several rounds of financing after the spin-off, according to corporate data platform Tianyancha. On May 26, 2020, it completed Round-A funding and raised 1.9 billion yuan ($293 million) with investment from institutions such as Sequoia China, CICC Capital and SDIC Fund.