Kiwi Instruments, a power management chip manufacturer in China, began trading on the Shanghai Sci-Tech Innovation Board (STAR Market) with an issue price of 55.15 yuan ($8.19) per share. As of 3:00 pm on May 26, its share price was 65.62 yuan per share, up by 18.98%, with a total market value of 4.531 billion yuan ($672,6 million).
With its IPO, Kiwi Instruments planned to raise 653 million yuan, and the funds are earmarked for three main projects: “Development and Industrialization of Power Management Series Control Chips”, “Development and Industrialization of Motor Drive Control Chips” and “Construction of its R&D Center”.
Kiwi Instruments was established in May 2014 and its power management chips are mainly used in LED lighting, general-purpose power supply, home appliances and IoT. In 2020, it sold 2.267 billion units of LED lighting products, and its market share in the LED lighting field was 17.17% if calculated by shipments.
In addition, the company has also launched corresponding products in areas such as general-purpose power supply, home appliances and IoT, which are mainly controlled by foreign companies. Kiwi Instruments’ products have found favor among customers such as Philips, Transsion, Anker Innovation and Xiaomi.
During the reporting period, its revenue grew rapidly, with revenues of 348 million yuan in 2019, 429 million yuan in 2020 and 887 million yuan in 2021.
With the development of new technologies such as AI, IoT, new energy and robots, the market of power management chips is expanding rapidly.
The power management chip market is mainly occupied by foreign chip giants such as Texas Instruments, ADI and Infineon. Chinese manufacturers have been able to achieve a higher degree of localization mainly in the driver IC type chips. According to the CHNCI, in 2020, the market size of power management chips in China was 78.1 billion yuan, and the market share of Chinese power management chip design companies including Kiwi Instruments was about 6.93% in total, featuring a low market share.