New IPO Pricing | "Analog IC company" SGMICRO debuts today, receiving over 250x subscription; gray market profit of HK$2,050 per lot

Futu News, June 26:$SG MICRO (03661.HK)$announced its allotment results, pricing shares at HK$85.20 each, issuing a total of 54.0012 million shares, with each board lot comprising 100 shares. The shares officially listed today.

On the previous trading day, SGM Microelectronics closed up 24.06% at HK$105.70 per share. With each lot consisting of 100 shares, investors made a HK$2,050 profit per lot, excluding fees.

During the public offering phase, SGM Microelectronics received 251.73x subscription. The final number of shares allocated to the public offering was 5.4002 million shares, accounting for approximately 10% of the total offering. Approximately 153,800 valid applications were received, with around 34,304 applications processed. The percentage of applicants who received one lot relative to the total number of applied lots was approximately 10%.

Additionally, during the international placement phase, SGM Microelectronics received 23.5x subscription. The final number of shares allocated to the international offering was 48.601 million shares, representing 90% of the total offering. Futu News compiled the relevant data in the table below:

Company Overview

The company is a leading Chinese analog integrated circuit (IC) firm. It designs, develops, and sells high-performance analog ICs and sensors featuring functions such as sensing, amplification, conversion, and driving—serving as fundamental building blocks for all electronic systems. According to Frost & Sullivan, based on 2025 revenue, the company ranks first among domestic firms in China’s analog IC market and eighth globally, holding a 1.8% market share.

Since its founding in 2007, the company has continuously developed and expanded its comprehensive product portfolio, pushing the boundaries of electronic technology. As of the latest practicable date, it offers over 7,200 analog and sensor products across 38 categories, providing system-level solutions backed by robust design and process capabilities to accelerate time-to-market.

Financial Summary

The company’s revenue amounted to RMB 26,157 million, RMB 33,470 million, and RMB 38,981 million in 2023, 2024, and 2025, respectively, representing a compound annual growth rate (CAGR) of 22.1% from 2023 to 2025. The company maintained sustainable profitability throughout the entire track record period. Its gross margins were 44.9%, 47.2%, and 46.2%, respectively. Adjusted net profit (a non-IFRS measure) was RMB 3,887 million, RMB 5,760 million, and RMB 6,935 million, respectively.

Use of Proceeds

Regarding the use of proceeds, SGM Microelectronics expects net proceeds from the global offering to amount to approximately HK$4.5 billion (based on an issue price of HK$85.20 per share). According to the prospectus, SGM Microelectronics intends to allocate the net proceeds from the global offering to the following purposes:

Approximately 60.0% of the net proceeds are expected to be used to enhance the company's research and development capabilities and expand its product portfolio over the next five years. Approximately 26.0% of the net proceeds are expected to be allocated to strategic investments and/or acquisitions aimed at integrating industry resources. Approximately 6.0% of the net proceeds are anticipated to be used over the next five years to expand overseas sales networks, particularly strengthening sales and marketing capabilities in Europe, Japan, South Korea, and Singapore. The remaining approximately 8.0% of the net proceeds will be allocated to working capital and general corporate purposes.

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Editor/Vincent

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