BaTeLab’s shares fell in their trading debut in Hong Kong, sliding below their initial offering price in a lackluster start for the Chinese semiconductor company backed by electric-vehicle giant BYD 1211, +3.12%.
Shares of the Chinese integrated-circuit provider declined as much as 14% early on Thursday before paring losses. It was last down 2.8% at HK$ 26.70. The benchmark Hang Seng Index HK:HSI was last up 1.6% at 16895.58.
BaTeLab raised 412.05 million Hong Kong dollars (US$ 52.8 million) in its IPO, which was priced at the lower end of the initial guidance range of HK$ 27.47-HK$ 38.45 a share, according to an exchange filing on Wednesday.
BaTeLab was the largest provider of analog IC patterned wafers in China in terms of revenue in 2022, according to Frost & Sullivan.
BaTeLab’s revenue jumped 66% to HK$ 352.5 million in 2022 from a year earlier. However, its revenue growth slowed to 26% on year in the first half of 2023 amid the downturn in the global semiconductor industry.
The company registered negative operating cashflow in two of the three years between 2020 and 2022. It attributed last year’s net cash outflow from operating activities to an increase in its advance payments, inventory, and accounts receivable.
The company plans to use the proceeds to enhance its research and design capabilities, further enrich its product portfolio and make strategic investments, according to the prospectus.
CICC, China Galaxy International, CMB International are among the joint advisors for BaTeLab’s IPO.