As China's largest and most advanced semiconductor manufacturing company, Semiconductor Manufacturing International Corporation (SMIC), was pinned on high expectations. However, today, more than a month after its listing on China's A-share market, the company's share price fell to a new low, losing 150 billion yuan in market value.
As of today's close, SMIC A-shares plunged 6.44% to RMB 66.26, setting a new record low since its listing, and its market capitalization fell to RMB 509.8 billion.
SMIC landed on the A-share market on July 16 with an issue price of RMB 27.46, which rose to RMB 95 at the opening of trading, and its market capitalization once reached more than RMB 650 billion.
In the past month since its listing, SMIC's market capitalization has dropped nearly 150 billion RMB from its high point, but it is still the highest market capitalization in China's semiconductor industry.
SMIC has formally confirmed that it has raised the maximum amount of the over-allotment fundraising - 53.23 billion yuan, which is the largest fundraising by the Chinese stock market in 10 years.
The financing 40% will be used for 12-inch chip SN1 project, 20% of the funds will be used as reserve funds for the company's advanced and mature process research and development projects, and the remaining 40% as supplementary liquidity.
The SN1 project refers to SMIC's joint venture SMIC Southern Wafer Fab in Shanghai, which is the first 14nm process production line in China and will have a capacity of 35,000 wafers/month (SN2 capacity is the same). It will be upgraded to more advanced processes in the future, which will greatly enhance the domestic manufacturing capacity of the 14nm process and below.