However, the value of the IPO was reduced from previously stated aims of raising 2.8 billion yuan (about $400 million).
The company has now set the price at 64.39 yuan for its listing on Shanghai's tech-heavy STAR board with the deal being announced one-day after foundry SMIC set its own fund-raising (see State backing to help SMIC stage $6.5 billion fund raiser ).
Cambricon is offering 40.1 million new shares or about 10 percent of the company after the IPO. This will value the company at 25.76 billion yuan (about $3.65 billion). The list could take place as early as this month, according to reports.
Cambricon used to supply Huawei with AI chips but in 2019 Huawei subsidiary HiSilicon decided to develop AI chips itself, becoming a direct competitor.
According to reports from the IPO prospectus Cambricon made a net loss of 1.18 billion yuan (about $168 million) on revenues that had tripled year-on-year to 443.9 million yuan (about $63.25 million).
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