Foxconn unit to raise $4.2 billion IPO in Shanghai

Tinuku - Foxconn unit to collect US$4.2 billion in an IPO on the Shanghai stock exchange. Taiwan's Foxconn Industrial Internet as one of Foxconn's electronics manufacturing giant units that makes cloud services and industrial robot equipment will float 10% of total shares in an initial public offering in China on Thursday aiming to raise 27.1 billion yuan as China's biggest mainland debut for three year.

Taipei-based Foxconn, also known as Hon Hai Precision Industry Co. is the world's largest electronics contract manufacturer, a major supplier of components and assembler products by international brands including Apple and Sony. Foxconn Industrial Internet will launch 1.97 billion new shares at 13.77 yuan per share to raise 27.1 billion yuan (US$4.2 billion).

Tinuku Foxconn unit to raise $4.2 billion IPO in Shanghai

The IPO will be the largest in mainland China since 2015. Foxconn said it will use the funds raised to improve smart manufacturing, build an internet platform to connect factories, invest in cloud computing and fifth generation communications technologies in factories in mainland China.

Analysts say the new effort is part of a wider plan to become a global technology leader. Foxconn became one of the largest single companies in China with one million workers in factories across the country, plus operations in more than 10 countries including Vietnam, Brazil and Mexico.