BYD Co., Ltd. announced on Wednesday that it has implemented a plan to make its subsidiary BYD Semiconductor go public on the GEM of the Shenzhen Stock Exchange.
BYD said that the plan still needs to meet a number of conditions before it goes through, including receiving approval from the Stock Exchange of Hong Kong Limited, passing a review conducted by the Shenzhen Stock Exchange and having its registration accepted by China Securities Regulatory Commission. Therefore, whether the plan will be given the go-ahead is unknown.
In a release dated May 12, the plan shows that BYD Semiconductor was founded in 2004, and has been focusing on the R&D, production and sales of power semiconductors, intelligent control (IC), intelligent sensors and optoelectronic semiconductors. In recent years it has spun off three subsidiaries, namely Ningbo Semiconductor, BYD Energy Saving Technology, and Changsha Semiconductor.
The latest round of financing indicates that its market value has exceeded 10 billion yuan ($1.5 billion), with its parent company holding a controlling interest of 72.30%. In 2020, BYD Semiconductor’s revenue reached 1.441 billion yuan.
After going public, BYD Semiconductor will continue to engage in its main business. Looking ahead, however, the company will promote the development of the semiconductor business in the fields of industry, home appliances, new energy and consumer electronics, and strive to become an efficient and intelligent semiconductor supplier.
BYD said that the IPO will help BYD Semiconductor bolster its financial legs and enhance its capability to manage risk, thereby improving its competitiveness and profitability. Moreover, this current spin-off listing does not look to have much impact on the operation of the other business segments of BYD.