(Reuters) – Hua Hong Semiconductor 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)
