Hon Hai's FII Will Raise Up to $4.3 Billion in IPO

Foxconn Industrial Internet plans to raise 27.1 billion yuan ($4.3 billion) selling stock in an initial public offering, according to Bloomberg.

Shares will be offered at 13.77 yuan apiece, valuing the company at about $43 billion. The smart factory unit of Hon Hai Precision Industry, Apple’s most important assembly partner, will float 1.97 billion shares in Shanghai, it said in a filing with the Shanghai Stock Exchange.

Hon Hai, which makes smartphones, cloud computing equipment and robots, wants to spend more than 27 billion yuan funding FII’s projects in areas from smart manufacturing to fifth-generation wireless technologies. The move will position billionaire Terry Gou even more centrally in the global tech supply chain as he tries to move beyond assembling PCs and phones and lessen a dependence on Apple.

Known as FII, the business’s valuation puts it on par with Sony. With sales of 355 billion yuan in 2017, its revenue is about level with Walt Disney or HP. Its fundraising is one of the highest-profile tech listings in Shenzhen or Shanghai in years, as the government courts a long under-represented sector.