China chipmaker SMIC to raise $6.55 billion in Shanghai share sale

China's Semiconductor Production International Corp (SIC) will raise 46.29 billion yuan ($ 6.5 billion) in Shanghai's shared sales, more than double its original target, of its sale prices following a raid on its Hong Kong listed stock Kong. The company, which had been seeking to raise 20 billion yuan, has said the sale price of its shares will be sold in Shanghai at 27:46 yuan, it said in a filing with the Shanghai Stock Exchange on Sunday. The offer informs the company at 109.25 times its net profit for 2019, based on increased share capital, subject to completion. By comparison, rival Taiwan Semiconductor Production Co Ltd (TSMC) has an average price target of 21.315. The SMIC fundraising comes as the Shanghai-based company intensifies its war in the midst of a broad technology-related dispute between the United States and China, and will be used to finance projects and replenish working capital. Established in 2000, SMIC is China's first semiconductor company and competes with Taiwan-based TSMC, which has advanced technology. Shares in SMIC's listing in Hong Kong have risen more than 5% on Friday to HK $ 33.25, and have risen to 172.5% since March. The author of the agreement, Hititong Security, has the potential to increase its IPO size by 15%, meaning SMICs could increase by 53.23 billion yuan. The company's share of the deal was almost 165 times legal, the company said. The two largest private equity funds, System's GIC Private Limited and the Abu Dhabi Investment Authority of Singapore, have registered as $ 3 billion worth of shares and 400 million yuan, respectively, SMIC said. China's National Integrated Circuit Industry Investment Fund, popularly known as the "big fund", has invested 3.5 billion yuan in the company, SMIC said. The online registration of the SMIC, especially targeted at investors, will begin Tuesday, it said. Follow Gadgets Now on Facebook and Twitter.