1.667 Billion Shares Allocated: Changxin Technology's Strategic Placement Lineup Is Star-Studded

On the evening of July 14, Changxin Technology disclosed its IPO announcement for listing on the STAR Market, determining the issue price at RMB 8.66 per share through offline book-building. Based on the total share capital after listing, Changxin Technology's listing valuation stands at RMB 579.178 billion. The highly anticipated strategic placement list was also released on the same day.

Overall, the strategic placement lineup is quite luxurious and can be broadly divided into three camps.

First, subsidiaries related to the joint sponsors (joint lead underwriters), including CICC Wealth and CSC Investment.

Second, a special asset management plan established for the participation of Changxin Technology's senior management and core employees in this issuance's strategic placement.

Third, investors participating in the strategic placement from large enterprises or their subsidiaries that have strategic cooperative relationships or long-term cooperation visions with Changxin Technology's business operations; large insurance companies or their subsidiaries with long-term investment intentions; and national-level large investment funds or their subsidiaries.

According to the allocation results, the issue price for this offering is RMB 8.66 per share, with a total issuance size of RMB 57.919 billion (before the exercise of the over-allotment option). If the over-allotment option is fully exercised, the total issuance size will reach RMB 66.607 billion.

The final strategic placement results show that the final number of shares strategically placed is 1.667 billion. The difference between the final strategic placement quantity and the initial strategic placement quantity is 1.677 billion shares, most of which were clawed back to the online issuance, while the portion of less than 500 shares, specifically 84 shares, was clawed back to the offline issuance.

From the strategic placement list, it is evident that long-term capital has entered, including multiple portfolios of the National Social Security Fund, multiple portfolios of the Basic Pension Insurance Fund, the National Adjustment Fund Phase II, China Life Insurance, PICC, China Post Life Insurance, Taikang Life Insurance, and others.

More notably, a batch of semiconductor industry chain companies and partners appeared on the strategic placement list, including upstream supply chain enterprises such as semiconductor materials and equipment manufacturers, as well as downstream customers in mobile phones, automobiles, and cloud computing.

Among them, semiconductor industry chain companies include AMEC, Montage Technology, Anji Microelectronics, Tongfu Microelectronics, Xi'an Yicai, Piotech, Eton Semiconductor, and NSIG.

Downstream application enterprises include Xiaomi Technology (Wuhan 1810 Enterprise Management Co., Ltd.), Meituan (Shenzhen Sankuai Network Technology Co., Ltd.), Alibaba Cloud (Hangzhou Alibaba Cloud Feitian Information Technology Co., Ltd.), ZTE, Chery Automobile (Chery Intelligence), Tencent (Shanghai Haoyu Information Technology Co., Ltd.), as well as Transsion Holdings (Chongqing Transsion), TCL Technology, and NIO.

In addition, the sponsor and related subsidiaries made co-investments, and the company's senior management and core employee asset management plans subscribed for certain quotas.

It is worth mentioning that Changxin Technology has unique requirements for selecting strategic placement investors.

First, introducing strategic placement investors can enhance the issuer's industrial chain synergy capabilities and ensure the supply of key resources.

Changxin Technology stated that introducing large enterprises upstream and downstream in the industry chain or their subsidiaries, which have strategic cooperative relationships or long-term cooperation visions with the company's business operations, can form stable synergies in upstream core materials, semiconductor equipment, key processes, packaging and testing, and other links, revolving around the R&D, manufacturing, mass production, and product iteration needs of memory chips such as DRAM.

Second, introducing strategic placement investors can bring downstream application scenarios, customer resources, and order growth opportunities.

Changxin Technology noted that introducing large enterprises or their subsidiaries in fields such as terminal applications, cloud computing, communication equipment, and smart vehicles can leverage their market position and customer needs in scenarios like consumer electronics, servers, data centers, automotive electronics, and AI computing power. This assists the company in promoting the verification and introduction of memory products, co-creation of specifications, joint testing, and batch applications.

Third, introducing strategic placement investors can optimize the shareholder structure and support the issuer's long-term development.

Changxin Technology stated that introducing long-term capital investors such as large insurance companies with long-term investment intentions and national-level large investment funds helps enhance the capital market's recognition of the company's long-term value, industry status, and growth space, optimizing the issuer's investor structure and stabilizing the long-term capital base.

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