Chipmaker Hua Hong says China's state-owned fund to invest $414.2 million (updated)

Hua Hong Grace Semiconductor

28/06/2023 12:44

(Adds details, background in paragraphs 2-4)
       June 28 (Reuters) - Hua Hong Semiconductor  1347.HK 
said on Wednesday China IC Fund II would participate in a
proposed RMB share issue as a strategic investor by subscribing
for RMB shares worth 3 billion yuan ($414.15 million), subject
to allotment.
    China's second-largest chip foundry has established an
independent board committee to consider and advise its
independent shareholders as to whether the terms of the China IC
Fund subscription are fair and reasonable, it said.
    The company said it expects the RMB share issue to enable it
to enhance its production capacity and research and development
capability, among other things.
    The Shanghai-based chipmaker had in May received Shanghai
Stock Exchange's approval for a planned public share sale worth
$2.6 billion, which would be the year's biggest mainland listing
so far. 

($1 = 7.2437 Chinese yuan renminbi)

 (Reporting by Echha Jain in Bengaluru; Editing by Shilpi
Majumdar)
 ((Echha.Jain@thomsonreuters.com;))