October 30, 2020 11:56:33 am
Shi Xu moved to Singapore within the early Nineties, hoping for monetary stability and job safety. Now the previous educational and his spouse are multimillionaires after their nanotechnology firm debuted within the city-state.
Nanofilm Applied sciences Worldwide Ltd., which gives options for smartphones and different electronics, opened at S$2.77 ($2.03) from its preliminary public providing value of S$2.59 a share and rose as a lot as 14% by 10:49 a.m. native time. Shi’s fortune, primarily made up of the 53% Nanofilm stake he holds together with his spouse, has surged to nearly $930 million, in line with the Bloomberg Billionaires Index. The corporate declined to touch upon the couple’s wealth.
The IPO raised greater than S$470 million, taking the corporate’s market worth to S$1.9 billion and marking the biggest main itemizing on the Singapore alternate since 2017 excluding actual property funding trusts, for which the city-state is a world hub. It provides to the rising listing of tech-related startups which have mushroomed there prior to now decade.
“Nanofilm is a uncommon expertise manufacturing IPO on SGX lately, bringing a recent perspective for native traders,” mentioned Margaret Yang, a strategist at DailyFX. With computer systems and wearable units its important income drivers and greater than 70% of gross sales coming from China, the corporate is ready to learn from the rising demand for digital units amid Covid-19, she mentioned. “It might appeal to different locally-incubated tech corporations to think about itemizing at house,” she added.
Shi, 56, is initially from China and based Nanofilm in 1999 with $300,000. It began as a tech startup spun off from Singapore’s Nanyang Technological College, the place he labored as an affiliate professor, after Japanese conglomerate Hitachi sought to undertake Shi’s coating expertise to its hard-disk drives. As NTU determined to create an organization to commercialize the expertise, the varsity requested him to steer it. Shi mentioned in an interview with an area journal in 2018 that he was “‘pressured’ to enter enterprise” and initially negotiated to take no-pay go away from the college for 2 years as a backup plan.
Now Nanofilm has greater than 1,400 staff in workplaces in Singapore, Japan, China and Vietnam. Its income climbed greater than 40% within the first half of the yr, after rising 16% in 2019, in line with its IPO prospectus. Whereas the agency’s important prospects embrace Fuji Xerox Co., Microsoft Corp. and Huawei Applied sciences Co., it famous that the reliance on its largest shopper, a tech firm it didn’t disclose, may very well be a danger issue — it generated greater than half of final yr’s gross sales.
The providing’s 13 cornerstone traders embrace Aberdeen Customary Investments (Asia) Ltd., Credit score Suisse AG, JPMorgan Asset Administration (Singapore) Ltd. and Venezio Investments Pte., a completely owned subsidiary of Temasek Holdings Pte. Temasek itself might be a considerable shareholder following the completion of the itemizing and sale of cornerstone shares, the prospectus confirmed.
The previous professor has no regrets for leaving the tutorial life, which his spouse, Jin Xiao Qun, seen as an “iron-rice bowl” — or secure, as per a Chinese language saying. She is the corporate’s assistant vice chairman.
“Enterprise is a lot tougher, in comparison with educating,” Shi instructed The Peak journal in 2018. “In case you requested me to return, I’d really feel bored.”
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