New stock news | Sky Semiconductor (02658) has completed its initial public offering, with a subscription amount of HK$7.71 billion, oversubscribed by 43.2 times.

Silicon carbide epitaxial wafer manufacturer Tanyu Semiconductor (02658) issued shares from November 27 to December 2, with the latest round of share issuance already concluded. As of noon on December 2, Tanyu Semiconductor has secured at least HK$7.71 billion in margin lending from brokers, based on a public offering fundraising amount of HK$174 million, oversubscribed 43.2 times. Tanyu Semiconductor plans to issue 30.705 million H shares, with 10% for public offering in Hong Kong at a price of HK$58 per share, with a minimum subscription of 50 shares and an entry fee of HK$2,929.20. The company is expected to be listed for trading on December 5, with CITIC SEC as its sole sponsor. Tanyu Semiconductor has introduced private equity funds Guangdong Primitive Forest and GF Global (for off-exchange warrants) as cornerstone investors, with subscriptions of RMB 120 million and HK$30 million respectively, totaling about 2.7849 million shares, equivalent to about 9.26% of the offering shares. According to the prospectus, Tanyu Semiconductor was established in 2009 and is a silicon carbide (SiC) epitaxial wafer manufacturer focused on producing homemade SiC epitaxial wafers. Based on the revenue and sales volume generated by homemade SiC epitaxial wafers in the global market in 2024, Tanyu Semiconductor is the third largest SiC epitaxial wafer manufacturer in China, with market shares of 6.7% (by revenue) and 7.8% (by sales volume). In the Chinese market in 2024, the company is also the largest producer of homemade SiC epitaxial wafers, with market shares of 30.6% (by revenue) and 32.5% (by sales volume). During the reporting period, Tanyu Semiconductor mainly provided 4-inch, 6-inch, and 8-inch SiC epitaxial wafers. To meet the evolving demands of downstream customers for larger and more cost-effective semiconductor materials and to maintain the company's market position, the company has continuously upgraded its manufacturing processes and research and development technologies, and gradually increased production capacity to keep up with industry trends for SiC epitaxial wafer suppliers. In particular, the new Dongguan Ecological Park base has been completed and is expected to be used for mass production of 6-inch and 8-inch SiC epitaxial wafers, with operation scheduled to start at the end of 2025. By leveraging its capabilities and expertise in research and mass production of SiC epitaxial wafers, Tanyu Semiconductor offers value-added SiC epitaxial wafer services, including SiC epitaxial foundry services, wafer cleaning services, and SiC-related testing services. The company's main customers for SiC epitaxial wafer services include research institutions, universities, and other industry participants upstream and downstream. Financially, the company's revenue increased from RMB 437 million in 2022 to RMB 1.171 billion in 2023, but then decreased to RMB 519.6 million in 2024. Net profit surged from RMB 2.8 million in 2022 to RMB 95.9 million in 2023. According to the prospectus, Tanyu Semiconductor plans to use 62.5% of the net proceeds from the global offering to expand the company's overall production capacity, 15.1% to enhance the company's independent research and innovation capabilities, 10.8% for strategic investments or acquisitions, 2.1% to expand the company's global sales and marketing network, and 9.5% for working capital and general corporate purposes.