Foxconn Unit Planning $4 Billion Investment After China IPO

Foxconn Unit Planning $4 Billion Investment After China IPO

Foto: Shutterstock

Foxconn Industrial is seeking to use proceeds from an initial public offering in China to bankroll 27.3 billion yuan ($4.3 billion) investment in next generation projects, according to Bloomberg.

A unit of Hon Hai Precision, the Taiwanese manufacturing giant responsible for making Apple iPhones and Amazon fire tablets, Foxconn Industrial is looking to fund eight new technology projects, the firm said in an application prospectus on the China Securities Regulatory Commission website.

Led by billionaire Terry Gou, Hon Hai is moving into sectors beyond pure electronics assembly as growth in the global smartphone industry sputters. Floating Foxconn Industrial is one part of this strategy with proceeds to be used to support research into next-generation telecommunications and the Internet of Things. The firm is also building a $10 billion display factory in the U.S. Foxconn Industrial had sales of 354.5 billion yuan in 2017, up from 272.7 billion yuan a year earlier, according to the prospectus. Net income climbed to 15.9 billion yuan from 14.4 billion.

Industrial internet platforms, data centers, cloud computing, communications Internet and cloud service equipment, 5G and IoT solutions, artificial intelligence manufacturing and intelligent manufacturing capacity expansion are among projects Foxconn Industrial intends to fund, the prospectus said. Foxconn said it will support the projects with bank loans if share proceeds aren’t sufficient. The prospectus didn’t disclose an issue price or the number of shares to be listed.

More from category

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

24 Feb 2018 comment

Celebrities are powerful magnet on social networks, but can also cost them a lot of money as well. According to Bloomberg, Snap, parent company of Snapchat, lost a lot of market value thanks to just one celebrity tweet.

Ericsson Nikola Tesla Marks Solid Results in 2017

Ericsson Nikola Tesla Marks Solid Results in 2017

24 Feb 2018 comment

In 2017, Ericsson Nikola Tesla Group sales revenue amounted to million 1,481.6 kuna, 6.9% lower year-over-year. Of the total sales revenue, the domestic market accounts for 18.7%, services to Ericsson account for 62.5% (of which 12.1% relates to Managed Services in Croatia), while other export markets participate with 18.8%. Sales in the Networks segment amounts to MHRK 739.3 (2016.: MHRK 806.5), Digital Services segment amounts to MHRK 559.6 (2016.: MHRK 593.1), Managed Services segment amounts to MHRK 178.9 (2016.: MHRK 185.9) and segment Other amounts to MHRK 3.8 (2016.: MHRK 6.1).

Rovio Dragged Out of Silence After Stock Is Sold Off

Rovio Dragged Out of Silence After Stock Is Sold Off

23 Feb 2018 comment

The company behind the Angry Birds game, Rovio, is struggling to stop investors walking out, according to Bloomberg.