IPO News | “Integrated Circuit Design Company” Nationz Technologies launches its IPO, with a planned listing on March 23. The subscription amount for one lot is HKD 2,181.78.

Futu Information reported on March 13 $NSING TECH (02701.HK)$ An announcement was made on March 13-18 regarding the IPO. The company plans to offer approximately 95 million shares globally and expects to be listed on March 23.

Company Overview

Nationz Technologies is a platform-based integrated circuit design company dedicated to providing control chips and system solutions for various smart terminals. Under its chip product business, the company has developed a diversified portfolio of products widely used in multiple key areas such as consumer electronics, industrial control and digital energy, smart homes, automotive electronics, and medical electronics.

In addition to its chip product business, the company also operates a lithium battery anode material business. The company's lithium battery anode materials business focuses on artificial graphite as its core and explores multiple technological routes such as silicon-carbon composites and hard carbon structures. These materials are widely used in new energy vehicles, energy storage systems, and portable devices, with clients covering leading battery manufacturers in the industry.

Moreover, the company holds a significant market share in the fields of financial payment security and computing terminal security. The company’s specialized market chips are extensively applied across various financial payment areas including USBKey, financial payment terminals, QR code payments, and biometric recognition payments. According to CIC data, the company has ranked first in market share for the USBKey sector for many consecutive years. Additionally, according to CIC, the company's trusted computing chip products have been widely adopted in embedded system applications such as enterprise-level computers, servers, and industrial control computers, maintaining a long-term leadership position in the Chinese market.

Financial Overview

In 2022, 2023, and 2024, Nationz Technologies' revenue remained relatively stable at RMB 1,195.4 million, RMB 1,036.8 million, and RMB 1,167.6 million, respectively. The company's gross profit fell from RMB 426.0 million in 2022 to RMB 18.0 million in 2023 but rebounded to RMB 182.4 million in 2024. Net losses increased from RMB 18.9 million in 2022 to RMB 594.0 million in 2023; nevertheless, the company successfully narrowed this loss by 56.9% to RMB 255.7 million in 2024.

Source: Prospectus

Use of Proceeds

Regarding the use of proceeds, Nationz Technologies is expected to receive net proceeds of approximately HKD 944 million from the global offering (assuming the over-allotment option is not exercised and based on the maximum offer price of HKD 10.8). According to the prospectus, Nationz Technologies plans to allocate the proceeds from the global offering for the following purposes in the specified amounts:

Approximately 50.8% will be used to enhance the company's R&D capabilities, develop new product lines, and improve product performance, including high-performance MCUs, multi-protocol communication chips, specialized market chips, and automotive-grade chips. Around 9.2% will be allocated to upgrading the company’s existing product portfolio. Approximately 15% will be used for strategic investments and acquisitions. Another 15% will go towards repaying part of the outstanding bank loans, and about 10% will be utilized for working capital and other general corporate purposes.

More reading:National Technology Prospectus

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