By Sherry Qin
Shares of power device maker BASiC Semiconductor rose sharply in their Hong Kong trading debut after raising around US$98 million.
Shenzhen-based BASiC Semiconductor's shares rose 10% early Wednesday to 34.80 Hong Kong dollars, equivalent to US$4.44, from their initial public offering price of HK$31.62 a share. The company raised HK$766.13 million in net proceeds from selling 27.4 million shares.
The company makes silicon carbide power devices, primarily used in electric vehicles, renewable energy and industrial applications. Compared with traditional silicon, using silicon carbide or SiC in power-control chips allows devices to withstand higher voltages, generate less heat, and switch electricity more efficiently. It enables EVs to drive longer distances on a single charge.
Though the company's revenue has climbed steadily over the past three years, it has remained loss making due to high raw material costs and significant initial depreciation from new production lines.
The company plans to spend most of its IPO proceeds to expand production capacity over the next four years and upgrade equipment and machinery.
Write to Sherry Qin at sherry.qin@wsj.com