Foxconn Industrial Internet Co Ltd. (FII) made a record debut by raising 27.1 billion yuan ($4.3 billion) on Friday, and became the most valuable tech company listed on the Shanghai Stock Exchange as well as in the entire mainland China.
Under the name of “Industrial Rich Alliance (工业富联)”, Foxconn’s stock price reached 19.83 yuan on the first day, achieving an increase of 44.01%.
The market value of Foxconn is about 390 billion yuan ($61 billion), surpassing the previous title-holder Hangzhou Hikvision Digital Technology Co. as well as Foxconn’s parent company Hon Hai Precision Industry, which is valued at 1.5 trillion NTD ($48.46 billion) on the Taiwan Stock Exchange.
Analysts say this phenomenon is reasonable considering FII’s list of strategic investors that include even all three members the BAT. Meanwhile, it also has partnerships with multiple state-backed enterprises such as Shanghai State Development & Investment, China Railway Investment and the China Structural Reform Fund.
“The listing [of FII] gives us a fund raising platform and offers the company a larger stage to perform,” said FII’s Chairman Chen Yongzheng at the ceremony in Shanghai.
The listing plays marks an important step in Foxconn’s corporate transformation. As the world’s largest contract manufacturer, Foxconn’s IPO considered to be its determination to tear up its OEM (original equipment manufacturer) label and invest in more diversified areas, including cloud computing, AI and 5G related projects.
Foxconn is currently building two flat-panel plants, one in Guangzhou Province, China, and the other in the state of Wisconsin, U.S.
According to business insiders, the listing of FII in mainland China could be a part of Hon Hai Precision chairman Terry Guo’s strategic plan to better adapt to the mainland market and its related policies.