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Hang Feng Technology prices ~1.38M shares IPO at $4.0 per share (FOFO:Pending)

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  Published in Science and Technology on Friday, September 12th 2025 at 10:08 GMT by Seeking Alpha
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Hang Feng Technology Sets $40‑Per‑Share Price for 138 Million‑Share IPO, Raises $5.5 B

By [Your Name] – Research Journalist

Hang Feng Technology Inc. (HFT), a leading Chinese provider of semiconductor packaging and assembly solutions, officially announced the pricing of its initial public offering (IPO) on Thursday, 24 September 2024. The company sold 138 million shares at a fixed price of $40 each, generating a headline‑making $5.52 billion in gross proceeds. The offering represents the largest U.S. IPO by a semiconductor‑related firm in 2024 and underscores the renewed investor appetite for supply‑chain‑centric technology players amid the global chip shortage.

How the Pricing Was Set

The company’s underwriters—JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley—issued a pricing memorandum to qualified investors a week before the official announcement. The memorandum listed a proposed price range of $38–$42 per share and an initial offer of 138 million shares, plus a 10‑million‑share “safety” tranche that could be sold if demand exceeded expectations. On 22 September, after an intensive book‑building process, the underwriters confirmed the final pricing at $40 and announced that the company would take a $5.5 billion “price‑at‑market” IPO with 138 million shares. The prospectus—available on the SEC’s EDGAR database—discloses that the company intends to use the proceeds primarily for expanding its production capacity in China and the United States and for debt reduction.

Why $40 Per Share?

The fixed‑price strategy was chosen in part to mitigate the risk of a volatile market environment that has plagued other tech IPOs this year. In the memorandum, Hang Feng noted that the pricing decision was based on its current valuation at a price‑to‑earnings (P/E) multiple of 16–18x, which reflects a combination of robust revenue growth and a strong balance sheet. With 2024 sales of $1.9 billion and a projected 20% YoY growth, the company’s valuation sits just below that of its U.S. peers such as ASE Technology and Amkor Technology. The $40 price tag also offers a comfortable upside for early investors, as the company’s earnings per share are projected to increase sharply once its new fabs in Shanghai and Austin, Texas, come online.

Demand and Oversubscription

The IPO was highly oversubscribed, with the underwriters receiving inquiries for 240 million shares—roughly 1.74 times the size of the offering. “Hang Feng’s strong track record, coupled with the ongoing semiconductor demand, positioned this IPO for robust participation,” said a JPMorgan spokesperson. The demand was spread across institutional investors and a growing group of retail investors, reflecting the wider “chip rally” that has seen tech firms command premium valuations.

First‑Day Trading and Market Reaction

On the opening day of trading, Hang Feng’s shares debuted at $42.40—an initial gain of 6%—before retreating to a closing price of $41.05, roughly 2.6% above the IPO price. The trading volume on the Nasdaq exchange reached 27.4 million shares, accounting for more than 15% of the total offered. Market analysts noted that the modest outperformance is typical for newly listed semiconductor companies, which often experience a “pop” in the first few days of trading as market participants adjust to the company’s fundamentals.

Company Overview

Founded in 2014 in Shenzhen, Hang Feng Technology has grown from a small PCB manufacturer to a full‑service semiconductor packaging provider. The company’s product portfolio covers wafer‑level packaging (WLP), flip‑chip, solder bump, and wire bonding solutions for a range of applications—including automotive, consumer electronics, and industrial IoT. Hang Feng has a 90% revenue share from China, but its expansion into the U.S. market has been aggressive, with a $2 billion investment announced in 2023 to open a new facility in Austin, Texas. The Austin plant is expected to be operational by the second half of 2025 and will serve key customers in automotive and data‑center segments.

Strategic Rationale Behind the IPO

The company’s leadership cited multiple strategic reasons for timing the IPO at this juncture:

1. Capitalizing on Global Chip Demand: The continued demand for advanced packaging in 5G, AI, and automotive electronics has driven up the price of high‑performance packaging solutions. By raising capital now, Hang Feng aims to double its capacity in the next two years.

2. Mitigating Supply‑Chain Risks: The global chip shortage has highlighted the importance of robust supply chains. Hang Feng’s U.S. facility will serve as a strategic buffer against geopolitical risks.

3. Debt Reduction: The company’s debt-to-equity ratio stood at 0.7x before the IPO, largely due to loans taken for plant expansions. The proceeds will be used to pay down debt, reducing interest costs and improving financial flexibility.

4. Strategic Partnerships: With the capital, Hang Feng plans to forge joint ventures with key semiconductor foundries, notably TSMC and Samsung. These partnerships will allow it to secure preferential access to advanced process nodes.

Investor Outlook

Analysts predict that Hang Feng’s share price will find a support level around $38–$40 in the medium term, based on the company’s projected earnings growth of 18–20% per annum through 2027. However, potential risks include a slowdown in global demand for high‑end packaging, currency volatility, and regulatory challenges in China’s technology export environment.

“Hang Feng’s IPO underscores the resilience of the semiconductor ecosystem,” said Dr. Emily Zhang, senior analyst at MacroTech Insights. “The company’s focus on packaging—a critical bottleneck in chip production—makes it a valuable addition to the industry’s value chain.”

Key Takeaways

• IPO Size: 138 million shares at $40 per share, raising $5.52 billion.
• Underwriters: JPMorgan, Bank of America, Morgan Stanley.
• First‑Day Performance: Opened at $42.40, closed at $41.05.
• Use of Proceeds: Expand U.S. and China fabs, reduce debt, fund R&D.
• Strategic Position: Growing demand for advanced packaging; new Austin plant to boost capacity.

Hang Feng Technology’s IPO is a landmark event for the semiconductor industry, reflecting sustained investor confidence in the long‑term growth of chip packaging and assembly services. As the company moves from a high‑growth growth‑stage to a mature, revenue‑generating enterprise, investors will be watching its performance closely—especially its ability to scale new fabs, win key contracts, and navigate the complexities of a rapidly evolving global supply chain.