The bankers left some money on the table, eh what?
The offering was subscribed 4000 times over (the retail portion was oversubscribed 2,750 times).
From Bloomberg, December 4:
Moore Threads Technology Co., a leading Chinese artificial intelligence chipmaker, surged in its Shanghai trading debut after raising 8 billion yuan ($1.13 billion) in the year’s second-largest onshore IPO.
The firm’s stock climbed 469% after being sold at 114.28 yuan a piece during the initial public offering. Investor interest in the offering was strong, with the retail portion oversubscribed 2,750 times even after a clawback, making it the second most sought-after onshore IPO over $1 billion since 2022, Bloomberg data shows.
The debut comes as optimism over China’s drive for tech self-sufficiency intensifies, fueled by trade tensions and fears of US technology curbs. The firm is also among those benefiting from a market share void left by Nvidia Corp.’s forced exit. Earlier this year, regulators eased listing rules for unprofitable firms on the Nasdaq-style Star Board to bolster homegrown startups.
Read more: Cambricon Aims to Triple Chip Output to Replace Nvidia in China
Moore Threads has a competitive technological edge and can benefit from the “domestic substitution trend” given US trade frictions and Beijing’s push to develop national champions, Fan Zhiyuan, an analyst at Sinolink Securities Co. wrote in a note. It is also the only Chinese firm that can manufacture all-purpose graphics processing units, he added.
Proceeds from the IPO will fund next-generation projects in AI and graphics chips as well as supplement working capital. The offering ranks behind Huadian New Energy Group Co.’s $2.7 billion IPO in July.
Moore Threads’ net loss was 724 million yuan during the first three quarters of the year, Sinolink Securities added, narrowing by 19% from the year ago period. Meanwhile, revenue surged by 182% to 780 million yuan.
Still, its valuations remain lofty. Moore Thread’s price to sales ratio at 123 times the offer price of 114.28 yuan per share is higher than the average of 111 times for peers, according to a Dec. 4 filing. The company recently asked its lead sponsor to remind investors of risks related to its valuations.
Origins
Founded in 2020 by former Nvidia executive Zhang Jianzhong, Moore Threads had started out earning revenue from graphics chips for gaming and visual rendering before pivoting to AI accelerators used in powering large language models....
....MUCH MORE
