China’s largest initial public offering since 2015 has gotten the attention of the nation’s top internet companies.
Affiliates of Baidu Inc., Alibaba Group Holding Ltd. and Tencent Holdings Ltd., known collectively as BAT, are becoming strategic investors in Foxconn Industrial Internet Co. The companies are buying 21.8 million shares each in FII’s listing at 13.77 yuan apiece, the firm said in a statement to the Shanghai stock exchange Sunday.
The smart factory unit of Hon Hai Precision Industry Co., Apple Inc.’s most important assembler, plans to raise 27.1 billion yuan ($4.3 billion) in the Shanghai listing. Hon Hai, a maker of smartphones, cloud-computing equipment and robots, wants to spend the money on FII’s projects in areas from smart manufacturing to fifth-generation wireless technologies.
Other strategic investors named in the FII statement were Central Huijin Investment Ltd.’s asset management unit, which agreed to buy 58.1 million shares. A unit of China Railway Corp. is buying 43.6 million shares, and China Life Insurance Co. is taking 34.1 million shares. The lockup period was set at three years.
Shanghai Oriental Pearl Group Co., a provider of internet services, also said in a statement to the Shanghai exchange on Sunday it is spending 300 million yuan on 21.8 million shares in FII’s IPO.
— With assistance by Xiaoqing Pi, Qi Ding, and Blake Schmidt