Foxconn to use proceeds of Shanghai IPO to fund 8 projects totaling to $8 billion

The projects it plans on funding will focus on building 5G solutions, smart manufacturing platforms and cloud computing services.

On Monday, Foxconn, the world’s largest contract manufacturer of electronics, stated it plans on using the proceeds of one of its subsidiaries, which got listed in Shanghai, to fund 8 projects totaling to $4 billion (27.3 billion yuan).

The development comes in the wake of Foxconn, formally known as Hon Hai Precision Industry Co, informing in January that it had received approval from its shareholders to list its subsidiary, Foxconn Industrial Internet Co Ltd (FII), on the Shanghai Stock Exchange.

Last week on Friday, FII had said, in a listing prospectus to the China Securities Regulatory Commission, that the 8 projects, it plans on funding with the said proceeds, were focused on building 5G solutions, smart manufacturing platforms and cloud computing services.

Incidentally, did not provide the details on the size or timing of the IPO.

The prospectus states China Galaxy Enterprises Limited, a unit of Hon Hai, directly and indirectly owns 69% of FII.

The sponsor and the lead underwriter of the IPO was China International Capital Corporation.

As per a filing made by FII, the firm made a net profit of 16.2 billion yuan in 2017, which represents a compounded annual growth rate of 6.32% from 14.4 billion yuan in 2015.

In 2017, its revenues touched 354.5 billion yuan, which represents an annual growth rate of 14% from 2015.

FII disclosed that its main clients include Apple, Amazon, Cisco, Nokia, Dell, nVidia, ARRIS, HPE, Huawei, and NetApp.

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