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Chinese chipmaker SigmaStar hopes to raise USD 780 mln in Shanghai IPO

Chipmaker SigmaStar is seeking to raise at least 5 billion yuan ($780 million) in an initial public offering in Shanghai, according to people familiar with the matter, as China expands its semiconductor industry.

The startup is working with advisers toward a share sale on the Nasdaq-style STAR board as soon as this year, said the people, asking not to be identified because the information isn’t public. The plan isn’t finalized and is subject to change, they said. The company targets a valuation of 30 billion yuan to 50 billion yuan, said one of the people.

China’s semiconductor makers are seeking to capitalize on the government’s push to match the U.S. and become more self-reliant as global chip supply dwindles. The world’s most-populous nation wants to build a group of technology giants that can stand shoulder-to-shoulder with Intel Corp. and Taiwan Semiconductor Manufacturing Co., with Premier Li Keqiang pledging to boost spending and drive research into cutting-edge chips.

Founded in 2017, SigmaStar designs chips for security systems, sports cameras, self-driving vehicles, and smart home devices, among other products, according to the company’s website. Its backers include China’s Kunqiao Capital and SummitView Capital, according to CB Insights.

SigmaStar representatives didn’t immediately respond to emailed requests for comment.

Shanghai’s STAR board was rolled out in 2019 as a testing ground that allowed streamlined registration-based IPOs, eased caps on valuations and price swings in the first few days of trading. More than 230 companies have debuted since then, including giants such as Semiconductor Manufacturing International Corp. and Bloomage Biotechnology Corp. China’s securities regulator is considering tighter listing rules for the trade venue, placing greater emphasis on hardcore technology and innovation, Bloomberg News reported in March. Bloomberg

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